(MENAFN) Finland's telecom equipment maker Nokia said it reached an agreement to acquire French Alcatel-Lucent in a deal valued at USD16.5 billion, Xinhua reported.
According to the agreement, Nokia will hold 66.5 percent of the newly combined firm, while its French rival will have the remaining 33.5 percent, headquartered in Finland.
Set to be concluded in the first half of 2016, the joint venture will help the two companies to report USD954.6 million of operating cost savings by 2019-end and a USD212.1 million cut in interest expenses by 2017.
"The new Nokia Corporation will be in a position to accelerate development of future technologies including 5G, IP and software-defined networking and cloud," the two companies said.
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