The acquisition will boost Nokia's capacity to provide optical networking equipment to major tech giants like Amazon, Alphabet, and Microsoft, who are significantly investing in data centers to fuel the growth of artificial intelligence
The European Commission has granted unconditional approval for Nokia's $2.3 billion acquisition of Infinera, a leading US-based provider of optical networking solutions. The decision clears the way for the Finnish technology giant to expand its market share in the optical transport equipment sector without raising competition concerns.
Nokia announced the acquisition in June 2024, agreeing to a cash and stock deal where Infinera’s shares will be purchased at $6.65 each—representing a significant premium over its market value at the time. The Commission’s assessment found that the merger would not hinder competition, as the combined market share of both companies remains moderate. It noted that numerous credible competitors would continue to provide competitive pressure within the sector.
Nokia enhances market position with Infinera deal
The merger is expected to strengthen Nokia’s position by broadening its product offerings and helping it compete more effectively with larger industry players. By integrating Infinera’s expertise in open optical networking solutions and advanced optical semiconductors, the newly formed entity will benefit from enhanced capabilities in digital signal processing, silicon photonics, and photonic integrated circuits.
The deal will also increase Nokia’s ability to supply optical networking equipment to major tech giants such as Amazon, Alphabet, and Microsoft, all of whom are making substantial investments in data centers to support the growth of artificial intelligence.
Additionally, Infinera’s strong presence in North America, which accounts for around 60% of its sales, will complement Nokia’s operations in regions such as APAC, EMEA, and Latin America, further strengthening its global footprint. The Commission’s approval clears the path for the acquisition to proceed without any conditions.
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