Chennai plant unlikely to be part of Microsoft deal: Nokia

Running against time to conclude its $7.2 billion deal with Microsoft, Finnish mobile maker

RELATED ARTICLES

Nokia is doing "all it can" to ensure that its biggest manufacturing facility in South Asia is part of the deal.

The Chennai plant may be excluded from software giant Microsoft's acquisition of Nokia's handset business for 5.4 billion euros due to tax issues.

"Nokia is ensuring all it can to see the transfer of the plant and other assets to Microsoft by tomorrow," a Nokia spokesperson told PTI. However, the task at hand is complicated, the spokesperson added.

"With the situation at the moment, it seems highly unlikely that the transfer will happen in the time frame," she said.

People following the developments at Nokia said the firm is also exploring the option of operating the plant by entering into a service agreement, which would allow it to continue as a contract manufacturer.

Last September, Nokia announced it would sell its devices and services (D&S) business, including assets in India, to Microsoft for $7.2 billion by March 2014. The deadline was subsequently extended to April 25.

The handset and other asset components under the deal are to be handed over to Microsoft's Finnish entity Microsoft Mobile Oy.

In March, the Tamil Nadu government served a Rs 2,400-crore notice on Nokia, saying the company sold products from the Chennai plant in the domestic market instead of shipping them overseas.

In a separate tax case, the Supreme Court ordered Nokia India on March 14 to give a Rs 3,500 crore guarantee before it transfers the plant to Microsoft.

The company has often indicated that the transfer of the plant could be adversely impacted if the dispute remains unresolved.

Recently, the company offered a voluntary retirement scheme to its employees in Chennai.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Not the best gift for Modi, but bypoll result may not affect BJP in long run

    In India’s hardball political landscape, there is little place for anyone to rest on their laurels, not the least if you are a successful prime mini

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Scientific and field level know-how

Recently addressing the scientists of the Indian Council of Agricultural ...

Rajgopal Nidamboor

How synchronous empathy helps us

All of us are in an undulating ‘hypnotic’ state. A ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture