Nokia Corporation CEO Discusses Alcatel-Lucent Merger
CEO Rajeev Suri discusses upon the takeover of a French business.
The Finnish phone manufacturer, Nokia Corporation, is about to take over the French global telecommunications device manufacturer, Alcatel-Lucent. Its CEO, Rajeev Suri, has stated that the company’s deal to purchase the European organization is proceeding well, and the individual wireless enterprises would be quite difficult to integrate.
Mr. Suri told The Times of India that the integrated company would be offering a more inclusive series of features than its competitor, Ericsson. Nokia News affirmed that Mr. Suri, who would be appointed as the combined company CEO, stated that the suppliers are “very much on track” to finalize the deal by the first six months of 2016 and are still waiting for endorsements from the Government of France, People’s Republic of China, and “ a couple of tiny” countries that he didn’t reveal.
Mr. Suri said that both businesses have estimated around $1,000,000,000 (€900,000,000) in operational cost synergies on a yearly basis in 2019 and stated extensively that the adjoined corporation expects to reduce administration and general costs. He also said that overall business would cut in procurement, expansion, research, wireless radios, and might be in sales as well.
With large takeovers, such as Alcatel-Lucent/Nokia, “the challenge is always around culture.” Mr. Suri said, “It is often underestimated because people focus on the substance and the practical, soft steps go missing. Not many integrations of such scale have succeeded.”
Nokia News today reported that Nokia recently introduced a managerial structure and new management group for its post-merger, and for 13 powerful leadership teams, 10 members would join from the Scandinavian enterprise. Suri believes that the company would have “clear governance,” which would ensure that the merger proves to be successful.
He stated, “Another big difference is the overlap in only one part of the business. Everything else is complementary. I don’t have IP. I don’t have transport. I don’t have fixed [assets], so I don’t need to integrate them.” Remarkably, he also added, “Radio is where the heavy lifting will take place in wireless, that’s where we need to integrate, and there of course will be some struggles during the process.”
Nokia Breaking News exclaimed that new four units would include optical/IP networks, applications and analytics, fixed networks, and mobile networks, and would be combined into a “Networks” division, for accountability.
Nokia Technologies would exist as an exclusive entity led by division’s president, Ramzi Haidamus. It would be setting up fifth generation labs across the world, which would help it to dominate the modern world.