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July 31, 2021

Nokia sold Romanian subsidiary to another group entity

Nokia Corporation, the sole associate of Nokia Romania, sold all the social shares to Nokia Finland Oy against EUR 18.84 M, in an operation that was part of the process of preparing the phone division of the Finnish group for the transaction toward Microsoft, approved in November 2013. “This move is part of getting our business division D&S (Devices & Services) ready for the transaction toward Microsoft. We will continue our operations in Romania,” Nokia group officials announced.
In November 2013, the shareholders of Nokia approved the sale of the mobile phones division to Microsoft, against EUR 5.44 bln. The sales agreement with Microsoft was signed in September, after Nokia lost its relevance on the market of smartphones, in the absence of a credible answer from iPhone, launched in 2007 by the American group Apple. Once the largest manufacturer of smartphones, with a market share exceeding 50 pc, Nokia collapsed to approximately 3 pc of the market and left the group of big 5 global producers of mobile handsets.
For 2012, Nokia Romania posted a turnover of RON 26.5 M, down from RON 4.1 bln the previous year. The drastic decline of the revenue was caused by the stoppage of the production of mobile phones at Cluj in 2011, as part of a programme aimed at increasing the efficiency and lowering costs. The Finnish group began the production at Jucu, Cluj, in February 2008, after investing EUR 60 M in the factory.

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