Nokia-Microsoft Deal Delayed

As reported by CNBC, Nokia has been forced to delay the completion of the sale of its phone business to Microsoft due to continued regulatory hurtles in Asia. Nokia stated that they expect the deal to close in April 2014, while previous guidance had stated an expected Q1 2014 close. In September 2013, Microsoft agreed to buy Nokia's phone business for $7.2 billion. However, after six months the deal has not closed, fueling concerns about whether the merger will ever come to fruition. Analysts believe the group may be forced to offer further concessions to Asian regulatory authorities, despite receiving approvals from both the European Commision and US Dept of Justice. Most likely, given the clout of these two companies, the deal will be pushed through and necessary changes made to satisfy all regulatory requirements. Read the entire article here.

A Busy Week in M&A!

As reported by Daily Finance, deal-makers have wrapped up three multi-billion dollar acquisitions so far this week as the markets get a late start thanks to Labor Day. This week has proven to be a busy one in terms of billion+ acquisitions, as three have been wrapped up already. Microsoft, Verizon and lesser known Jarden (consumer products) all completed deals with price tags over the billion dollar mark. Microsoft agreed to purchase Nokia's cellphone business for $7.2 billion in a move that has been anticipated by many. Controlling the business allows MSFT to make a more unified and coordinated challenge to Apple, Google and Samsung in the mobile market. This will allow the company to leverage their Windows platform, which has already gained more traction in mobile than many expected (although the desktop version has left much to be desired). Additionally relevant, and perhaps less obvious, is what impact the move will have on Microsoft's executive team moving forward. MSFT has "acquired" Nokia's CEO, Stephen Elop in the deal; Elop is a proven leader and will automatically be the top contender to succeed Steve Ballmer. Verizon's deal was more of a self purchase, as it completed the purchase of 45 percent of Verizon Wireless held by British Telecom giant Vodaphone. At a price of $130 billion, the cost was steep. However, this gives Verizon Communications full control of the company and its 100 million subscribers. Finally, in a deal that smells incredible, Jarden purchased privately held scent seller Yankee Candle, best known for its candles. That deal is valued at almost $1.8 billion. What does this mean for the wider market? It is difficult to tell. September is usually a bad month for stock markets, which could make M&A deal makers skittish. However, mega-deals of this nature are a good sign that activity in the second half may pick up as predicted. Read the entire article here.

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