According to an estimate from the ministry, the State would have to pay around 100 million euros to acquire this company, considered one of the world leaders in the sector and valued at 350 million euros.
The Minister of the Economy, Bruno Le Maire, signed a purchase promise on Wednesday to acquire 80% of Alcatel Submarine Networks (ASN), the former submarine cable division of Alcatel held since 2015 by the Finnish Nokia , Bercy announced Thursday in a press release.
According to an estimate from the ministry, the State would have to pay around 100 million euros to acquire this company, considered one of the world leaders in the sector and valued at 350 million euros.
“This operation, led by the State Participation Agency (APE), demonstrates the State’s capacity to invest in French companies in order to support and develop their strategic activities, as well as the relevance of the APE as a tool for defending the fundamental interests of the Nation”, we can read in a press release from the Ministry of the Economy.
Bercy adds that the sector “is experiencing strong growth with the global development of the Internet and a growing demand for connectivity”. Submarine cables provide 99% of global digital communications.
1 billion euros in turnover
The agreement provides for the possibility for the State to eventually acquire 100% of the company’s capital and Nokia will keep a minority share in an initial phase to facilitate the transition.
“ASN has undergone a significant transformation in recent years and occupies a strong position in the market,” commented Pekka Lundmark, CEO of Nokia, in another press release.
“I am happy that we have found a natural owner for the company,” he added.
ASN, which has a turnover of more than a billion euros, has around 1,000 employees, two-thirds of whom are in France, and has a large industrial site in Calais.
It competes with two major players, the American TE SubCom and the Japanese NEC.
Entering the fold of Nokia following the merger with Alcatel-Lucent in 2015, the former submarine cable division of Alcatel was the subject of negotiations in 2019 for a takeover by the French equipment manufacturer Ekinops but the sales process was interrupted.
