Nokia’s India plant may not be included in Microsoft deal

2022-01-15

It’s well known that Microsoft will be acquiring Nokia’s mobile business, however, recent tax issues in India are making it difficult for Nokia’s production plant in the region to be included in their deal with the Seattle-based tech giant.

So how does Nokia get around this? It’s simple: they’ll strike up a contract deal with Microsoft instead, according to a Nokia spokeswoman:

"It's highly unlikely that the plant will transfer, given that the (deal) closing with Microsoft is tomorrow…If the asset doesn't get transferred, we are entering into a service agreement with Microsoft."

The tax dispute has yet to be settled between Nokia and the Indian Court. Nokia is expected to agree to a guarantee of future tax payments, before they are legally allowed to hand over the plant to Microsoft.

Should Nokia opt to work with Microsoft as a contractor, then they’ll only be able to do so in India for 12 months and not a day longer, after their sale Microsoft.

Nokia’s Indian plant is a significant part of their mobile manufacturing process. Do you think that this is going to have an effect on the world’s largest Windows Phone manufacturer’s bottom line? Or do you think that Microsoft will swoop in find a way to have the deal go in Nokia’s favor?

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