Nokia's Infinera Acquisition Gets FTC Green Light

Deal News | Feb 13, 2025 | EIN

Taiwan's Fair Trade Commission (FTC) has approved the acquisition of Infinera Corp by Nokia Corp, despite it being an extraterritorial merger, due to the companies having subsidiaries in Taiwan. The FTC determined that the merger would not hinder competition or create market entry barriers, citing the robust competitive landscape and strong bargaining power of telecommunications and cable TV operators. While the two companies compete in the optical transmission equipment market, they focus on different technologies and product applications, resulting in minimal customer and regional overlap. This merger is expected to expedite product innovation and development, ensuring economic benefits surpass any negative competition impacts. The acquisition will grant Nokia control over Infinera's entire market shares, business operations, and personnel. Announced in June 2024, the deal is valued at $2.3 billion and is projected to close in the first half of the year.

Sectors

Telecommunications Equipment
Technology

Geography

Taiwan – The FTC in Taiwan approved the merger due to the involvement of subsidiaries from both companies in the country.
Finland – Nokia, a Finnish company, is the acquirer in this transaction.
United States – Infinera, the target company, is based in California, USA.

Industry

Telecommunications Equipment – Both Nokia and Infinera operate in the optical transmission equipment market, an integral part of the telecommunications industry.
Technology – The merger focuses on integrating the technologies of both companies to enhance product development.

Financials

US$2.3 billion – The acquisition price agreed upon by Nokia to acquire Infinera.

Participants

Name	Role	Type	Description
Nokia Corp.	Acquirer	Company	A Finnish multinational telecommunications, information technology, and consumer electronics company.
Infinera Corp.	Target Company	Company	A California-based company specializing in optical transmission equipment.
Taiwan Fair Trade Commission	Regulatory Authority	Government	The FTC responsible for approving extraterritorial mergers involving subsidiaries in Taiwan.