Nokia has completed the sale of its subsea cable unit, Alcatel Submarine Networks (ASN), to the French State.
The vendor announced the closing of the deal last week and said the transaction has netted it around €350 million ($363m).
Nokia noted that it retains a 20 percent shareholding in ASN, with board representation, to "ensure a smooth transition until targeted exit." Once finalized, the French State, which is represented by the Agence des participations de l'Etat, will acquire Nokia's remaining interest.
Since announcing the planned sale in June, Nokia stated that it has considered ASN a discontinued operation.
The vendor said the deal will enable the company to focus its network infrastructure portfolio on growth opportunities in its core markets.
"Together with the planned acquisition of Infinera – also announced in June 2024 – the divestment demonstrates Nokia’s active management of its business portfolio, one of the company’s six strategic pillars," a Nokia statement said.
Nokia's Network Infrastructure Business Group will comprise three units: Fixed Networks, IP Networks and Optical Networks. The deal is expected to reduce the group's net sales by approximately €1bn ($1bn) but will increase its operating profit margin by 100 to 150 basis points.
Through several mergers and acquisitions, ASN can trace its roots back to the late 1800s. Nokia acquired the modern-day Alcatel-Lucent in 2015. To date, ASN has installed more than 750,000 km of optical submarine cable worldwide. Its cable ship fleet comprises seven vessels, managed by Louis-Dreyfus Armateurs.
The company said that under the ownership of the state’s holding agency APE, the French State will “secure the future of a strong French and European player in a globally competitive market.”
