Nokia shares jump on deal to buy Infinera in North America

Ciena

28/06/2024 08:33

** Shares in Nokia  NOKIA.HE  rise 4% after the Finnish
network equipment maker signed a deal to acquire
California-based optical semiconductor maker Infinera  INFN.O 
on Thursday
    ** Nokia expects the $2.3 billion deal to help expand its
presence in the optical network business in North America and to
increase its profits by 10% until 2027
    ** The combined company would have a 20% market share
relative to Ciena's  CIEN.N  20% and Huawei's  HWT.UL  31%,
J.P.Morgan analysts say
    ** "Historical precedent for Optical industry M&A points to
heightened integration risk of competing Optical portfolios,"
JPM says, adding this would "limit the appetite" for Ciena to
make a competing bid
    ** Nokia's shares are among top gainers on Europe's
benchmark STOXX 600 index  .STOXX 

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))