How a potential Nokia takeover would impact the network equipment market - Business Insider

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Nokia is reportedly facing a hostile takeover attempt — and the US government would likely exert pressure to stymie such a deal

that the company was exploring a possible sale or merger, though Nokia denied these claims.

An attempt to take over Nokia would be met with intense regulatory scrutiny, as it would weaken US-aligned alternatives to Huawei and ZTE. The US government — which has asserted that Chinese suppliers Huawei and ZTE pose to national security — has attempted to steer allied nations toward telecom equipment providers Ericsson, Samsung, and Nokia. the idea of the US government purchasing a controlling stake in Nokia or Ericsson to make one of them "a far more formidable competitor and eliminate concerns over its staying power or their staying power." asset sell-offs and multiyear restructuring initiatives — would run counter to US interests in this regard.

If, however, a takeover bid goes through, Huawei stands to grab considerable market share. In a world where Ericsson and, to a lesser extent, Samsung stand as the primary US-sanctioned telecom equipment providers, other nations may find it increasingly difficult to abide by

 

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