The European Commission has granted unconditional approval for Nokia’s USD 2.3 billion acquisition of US-based optical networking specialist, Infinera, clearing a major regulatory hurdle and moving the deal closer to completion.
The acquisition was announced last year to bolster Nokia’s position in the optical transport market, where both companies provide high-speed data transmission solutions using optical fiber technology. The European Commission’s investigation concluded that Nokia and Infinera’s combined market share would remain moderate, allowing for approval across the European Economic Area (EEA) without conditions.
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Following this decision, the last significant regulatory approval needed appears to be from the U.S. Federal Trade Commission (FTC), as Infinera is a publicly traded American company. While Infinera had already anticipated a smooth clearance process, setting a closing date for February 28, 2025, it remains to be seen whether any additional hurdles will arise in the U.S. Nokia has not yet responded to inquiries regarding pending approvals.
This European approval follows a similar decision made by Taiwan’s Fair Trade Commission two weeks ago. The Taiwanese regulator reviewed the deal because both companies have operations in Taiwan (a global leader in semiconductor production).
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Strengthening Nokia’s AI and Data Center Ambitions
Beyond expanding its optical networking business, Nokia sees this acquisition as a strategic move to strengthen its presence in the AI-driven data center market. Given Infinera’s expertise in open optical networking and advanced optical semiconductors, the merger is expected to accelerate Nokia’s product development and increase its exposure to webscale customers—companies that operate large-scale cloud and data center infrastructures—who currently account for approximately 30% of Infinera’s revenue.
Following the merger, Nokia’s optical networks division is projected to grow by 75%, solidifying its competitive edge in the high-speed networking industry. This aligns with the company’s broader ambitions, reinforced by the recent appointment of Justin Hotard as Nokia’s new President and CEO. Hotard brings extensive experience in AI data center markets, further signaling the company’s commitment to advancing its capabilities in this fast-evolving sector.
As the February, 28, closing date approaches, all eyes remain on the FTC’s next move, which could determine the final timeline for completing this landmark deal.
