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Nokia agrees on China joint venture with Huaxin

The Nokia headquarters is seen in Espoo, Finland, July 28, 2015. REUTERS/Mikko Stig/Lethikuva

Image Credit: Reuters/Mikko/Stig/Lethikuva

HELSINKI (Reuters) – Finnish telecom equipment maker Nokia <NOKIA.HE> on Friday said it has agreed to create a joint venture in China with state-owned Huaxin, following Nokia’s proposed takeover of Alcatel-Lucent.

Alcatel-Lucent and Huaxin currently share a similar joint venture.

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According to a memorandum of understanding, Nokia said it expects to hold 50 percent plus one share in the new joint venture, with Huaxin holding the remaining shares.

The Nokia-Alcatel deal has not yet won approval from Chinese authorities. The transaction is expected to close next year.

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(Reporting by Jussi Rosendahl; editing by Jason Neely)

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