Microsoft's monster acquisition of Nokia's device unit is expected to close in April of this year, Nokia has just announced.
The deal has stirred quite some waves in the tech world, and it's worth a whopping $7.2 billion. A process of this scale, as expected, takes a while to reach completion, as it must go through most regulatory bodies of the world.
Previously, the two companies said they expected the deal to close in the first calendar quarter of this year, but it now seems that it was pushed back. Microsoft offered more details on the current status in a recent blog post on Sunday, March 23, saying that the deal is nearing the final stages of the global regulatory approval process.
Nokia has now jumped in with more information as well, issuing a press release on Monday, March 24, to explain the slight delay and offer a new timeframe.
"Nokia today announced that it now expects the transaction whereby the company will sell substantially all of its Devices & Services business and license its patents to Microsoft to close in April 2014. This compares with Nokia's previous expectation on the transaction closing in the first quarter of 2014, which Nokia communicated when the company first announced the transaction on September 3, 2013. Nokia and Microsoft remain committed to the transaction," reads the press release.
"As previously communicated, the closing of the transaction is subject to regulatory approvals and other customary closing conditions. Nokia and Microsoft have already received most of the required regulatory approvals, including approvals from the European Commission and the U.S. Department of Justice. Furthermore, Nokia and Microsoft continue to make good progress related to the closing conditions and integration planning. However, the transaction is pending approvals from certain antitrust authorities in Asia which are still conducting their reviews."
"Nokia and Microsoft continue to be confident that the transaction will close, resulting in the sale of substantially all of Nokia's Devices & Services business to Microsoft, and both companies are working diligently to close the transaction as expeditiously as possible."
Nokia further highlights that ongoing tax proceedings in India did not and will not affect the closing, nor the material deal terms of the transaction with Microsoft. While the two companies are determined to go through with this deal and should complete it next month, the delay will deal a blow to both Nokia and Microsoft.
Microsoft will now have to wait a little longer to absorb Nokia's division, while Nokia's big paycheck will no longer be tied to the first quarter, as originally planned.
Nevertheless, analysts will adjust their models and the deal will likely close sometime within the next 30 days.
