Nokia is expected to receive unconditional EU antitrust clearance for its $2.3 billion acquisition of Infinera (INFN), a U.S.-based optical semiconductors and networking equipment maker, according to sources familiar with the matter.
Announced in June 2023, the deal would make Nokia the second-largest player in the optical networking market with a 20% share, trailing only Huawei.
This acquisition strengthens Nokia’s ability to sell networking equipment to major tech firms like Amazon (AMZN), Alphabet (GOOGL), and Microsoft (MSFT), which are expanding data centers to support AI-driven demand.
The European Commission is set to complete its preliminary review by February 26, though Nokia remains confident about closing the deal in Q1 2024, as per its latest financial statement.
Infinera holds a strong market position in intra-data center communications, with 60% of its revenue coming from the U.S.