Nokia Sells Submarine Cable Unit to France in $375M Deal

01 Jul, 2024

Nokia Sells Submarine Cable Unit to France in $375M Deal

Nokia has announced plans to sell its undersea internet cable business unit, Alcatel Submarine Networks (ASN), to France for €350 million ($375 million). Initially, France will acquire an 80 percent stake in ASN, with Nokia retaining a 20 percent stake to ensure a smooth transition. The complete sale is expected to be finalized by early 2025 when France will purchase the remaining stake from Nokia.

This move marks the end of Nokia’s ownership of ASN, a legacy from its 2016 acquisition of Alcatel-Lucent, which included 800,000 kilometers of undersea cables. Nokia acquired Alcatel-Lucent for €15.6 billion. Despite the increasing demand for submarine internet cables, Nokia has decided to divest ASN as it is considered a "non-core standalone business." This sale will allow Nokia to focus on higher-margin growth opportunities, although it will result in a loss of approximately €1 billion in annual revenue but an improvement in margins by 1 to 1.5 percent.

The French government’s acquisition of ASN is seen as a strategic move, given Alcatel's historical significance in France. Nokia believes that France will sustain ASN’s long-term operations, maintaining its position in the global submarine cable market.