Nokia (NOKIA.HE) announced on Thursday that it has reached an agreement to sell its submarine networks business, ASN, to the French state. The deal is valued at 350 million euros ($374 million). Despite the significant transaction, Nokia emphasized that this divestiture will not impact its financial outlook, maintaining confidence in its ongoing business operations.
The company elaborated that the sale of ASN is expected to reduce its sales in the Network Infrastructure Business Group by approximately 1 billion euros. This substantial decrease reflects the importance of ASN within Nokia’s broader network infrastructure segment. However, the company remains optimistic about its future performance and growth prospects without this division.
The divestiture process is anticipated to be completed either at the end of 2024 or the beginning of 2025. This timeline provides a clear framework for the transition of ownership, allowing both Nokia and the French state to prepare adequately for the changeover. The extended timeframe also suggests a thorough approach to managing the operational and strategic aspects of the sale.
Nokia’s decision to sell ASN to the French state aligns with broader industry trends of consolidating and restructuring assets to focus on core competencies. For Nokia, this move could potentially streamline its operations and allow for a more concentrated effort on its remaining business segments. The French state, on the other hand, gains a valuable asset that can enhance its technological infrastructure and capabilities.