U.S software giant Microsoft, on Monday, said that it expected its deal to acquire Nokia’s phone unit, which has been delayed due to a number of regulatory and tax issues, to close on Friday.
The announcement, however, has no mention of Nokia’s Chennai plant, which has become the focal point of two separate tax disputes.
“The transaction will be completed this Friday, April 25, when we’ll officially welcome the Nokia Devices and Services business as part of the Microsoft family. The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration,” the company said in a statement.
According to people with direct knowledge of the matter, the plant, in all likelihood, will be operated as a contract manufacturer by Nokia for a certain period of time. This is a controversial point for a majority of the plant’s workers, who have claimed that taking up contract jobs would leave them with less job security.
A Nokia spokesperson pointed out that the company continues to weigh its options.
“As there is still time before the closing of the deal, we cannot speculate on possible outcomes at this point. With Chennai, it is worth remembering that we have said we will consider a services agreement with Microsoft should our Indian assets not be able to transfer at the close of the global deal,” the spokesperson said.
