Nokia denies talking with Samsung Electronics to sell mobile networks business

Industry

Nokia denies talking with Samsung Electronics to sell mobile networks business

Published: 30 Aug. 2024, 14:29

SARAH CHEA
chea.sarah@joongang.co.kr

A visitor tests Nokia's VR glasses during the Mobile World Congress 2024 in Barcelona, Spain on Feb. 26. [AP/YONHAP]

Finnish tech giant Nokia denied Bloomberg's report that it is in talks with Samsung Electronics to sell its mobile networks business which could potentially be valued up to $10 billion.

"Nokia has nothing to announce in relation to the speculations published in an article today, and no related insider project exists," the tech firm said in a regulatory filing. "Nokia is committed to the success of its Mobile Networks business, a highly strategic asset for both Nokia and its customers."

The denial notice comes as Bloomberg reported that Nokia had been having discussions with multiple suitors including Samsung Electronics for its mobile networks business, citing an anonymous source, adding that there’s no certainty Nokia would decide to pursue any transaction.

"Samsung has expressed initial interest in acquiring some Nokia assets as it seeks to gain scale in the radio access networks that connect mobile phones to telecom infrastructure," the report said.

Nokia has "struggled for years to compete with larger rivals like Huawei Technologies," the report added.

Nokia’s mobile networks division supplies servers and base stations to global wireless operators. It generated 1.97 billion euros ($2.19 billion) in sales in the second quarter, around 44 percent of its total sales. That is down 25 percent on year as major smartphone firms slow down their 5G network upgrades.

Nokia shares rose 5.1 percent to close at 3.98 euros on Thursday after the reports.

BY SARAH CHEA [chea.sarah@joongang.co.kr]