 has announced the sale of its submarine networks division, Alcatel Submarine Networks (ASN), to the French state for 350 million euros ($374 million).){kind=link}
Nokia (NOKIA.HE) has announced the sale of its submarine networks division, Alcatel Submarine Networks (ASN), to the French state for 350 million euros ($374 million). This strategic sale will not affect Nokia’s financial outlook but is expected to reduce sales in its Network Infrastructure Business Group by 1 billion euros.
The sale, expected to close by late 2024 or early 2025, underscores Nokia’s commitment to portfolio management and focus on core strategic assets.
The French state, through the Agence des Participations de l'Etat (APE), will acquire 80% of ASN, while Nokia will retain a 20% stake and board representation to facilitate a seamless transition.
This divestiture will streamline Nokia’s network infrastructure portfolio, enabling a sharper focus on growth opportunities in core markets. By divesting ASN, Nokia expects to improve profitability and enhance its technological leadership. ASN has been recognized as a global leader in submarine communication networks, having significantly grown under Nokia’s ownership.
Strategic Implications
Nokia will classify ASN as a discontinued operation from the second quarter onward. The Network Infrastructure Business Group will now comprise fixed, IP, and optical networks. This restructuring is anticipated to reduce net sales by approximately 1 billion euros but will increase the operating profit margin by 100–150 basis points.
Acquiring ASN is a strategic move for the French state to secure and enhance national digital infrastructure. ASN’s acquisition ensures continuity and stable investment in critical communications technology, benefiting customers, employees, and partners. The French state’s commitment to maintaining and developing ASN’s technology and operations aligns with its broader goal of national security and technological sovereignty.
Pekka Lundmark, President and CEO of Nokia, stated, “This is a significant step in our strategy of actively managing our portfolio. The divestment allows our network infrastructure business to focus on growth and technological leadership. ASN has transformed significantly and has a strong market position. We are confident the French state will continue to invest in ASN and protect critical industry know-how.”
Alain Biston, President and CEO of ASN, commented, “This marks an exciting new chapter for ASN. The French state’s ownership provides a stable platform for further development of our technology. Nokia’s retained stake underscores our commitment to a smooth transition for all stakeholders.”