Alcatel- Lucent
A big step has been made after the shareholders of two companies approve on Sept. 7 the merger proposition. A single, while significant, hurdle remains before proceeding to the wedding: the approval from the Committee on Foreign Investment in the United States (CFIUS), which examines the security implications of U.S. mergers and acquisitions that involve overseas companies. Most analysts do not foresee the CFIUS causing any problems. So the prediction of Alcatel-Lucent management that the merger could be achieved by the end of the year is now a real possibility. But pain is not finished as the two companies could face significant hurdles including both cultural differences and management leadership.
Alcatel Lucent is a $25bn company with $2bn in net income, $2.4bn in R&D expenses, 25,000 registered patents, with a leading 17% market share in the wireline market and 16% ( 3rd ranking) in mobile operations and a second or third place in the global telecom sector.