Apparently, the deal that Microsoft is willing to sign with Nokia will not be completed until April. The sale of Nokia to Microsoft has been delayed for a few weeks, as the two companies still wait for an approval from regulatory authorities in Asia.
The deal was first announced in September, when Microsoft and Nokia revealed their intention to work at this new partnership. The deal was expected to be finalized in the first quarter of 2014, but apparently it is going to take a little more than that.
Initially, the deal received approbation from the authorities in the European Union and the United States, but there are some approvals they still need from Asia. The law in certain countries indicates that companies need approval from local authorities before a transaction is closed, involving companies in the region.
A statement from Brad Smith from Microsoft indicated that “we expect to close next month, in April 2014.” Previously, the statement for Microsoft said that “the transaction is expected to close in the first quarter of 2014, subject to approval by Nokia’s shareholders, regulatory approvals and other closing conditions.”
So, there is no wonder that Microsoft reacted and issued a new press release to talk about the situation of this deal, as the famous tech giant saw that the first trimester of the year is close to its ending, with absolutely no results in closing this deal. Smith was the one who claimed that “to date we have received approvals from regulatory authorities in 15 markets on five continents.” He added that they are still waiting for approval confirmation in the final markets.
The deal with Nokia has cost the company no less than 5.4 billion. The phone maker revealed that the tax disputes it has in China are not going to affect the company and the way this deal will evolve. And the time that closing this deal is taking is not that big. Actually, commonly such deals take time. For instance, when Microsoft purchased Skype in 2011, the deal needed no less than five months to be fully completed.