• FILE -  This Thursday, Jan. 29, 2015 shows the Nokia head offices in Espoo, Finland. Nokia says it is in advanced discussions to acquire the French telecommunications company Alcatel-Lucent.  In a brief statement Tuesday, the Helsinki-based mobile technology concern said the two companies are in advanced negotiations "with respect to a potential full combination which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." (Roni Rekomaa/Lehtikuva via AP, File)     FINLAND OUT

    FILE - This Thursday, Jan. 29, 2015 shows the Nokia head offices in Espoo, Finland. Nokia says it is in advanced discussions to acquire the French telecommunications company Alcatel-Lucent. In a brief statement Tuesday, the Helsinki-based mobile ... technology concern said the two companies are in advanced negotiations "with respect to a potential full combination which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." (Roni Rekomaa/Lehtikuva via AP, File) FINLAND OUT (The Associated Press)

  • FILE -  This Thursday, Jan. 29, 2015 file photo shows the Nokia head offices in Espoo, Finland. Nokia says it is in advanced discussions to acquire the French telecommunications company Alcatel-Lucent.  In a brief statement Tuesday, the Helsinki-based mobile technology concern said the two companies are in advanced negotiations "with respect to a potential full combination which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." (Roni Rekomaa/Lehtikuva via AP, File)     FINLAND OUT

    FILE - This Thursday, Jan. 29, 2015 file photo shows the Nokia head offices in Espoo, Finland. Nokia says it is in advanced discussions to acquire the French telecommunications company Alcatel-Lucent. In a brief statement Tuesday, the Helsinki-... based mobile technology concern said the two companies are in advanced negotiations "with respect to a potential full combination which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." (Roni Rekomaa/Lehtikuva via AP, File) FINLAND OUT (The Associated Press)

Nokia confirms acquisition of French telecommunications company Alcatel-Lucent

Markets Associated Press

Nokia says it is acquiring French telecom company Alcatel-Lucent through a public exchange offer in France and the United States.

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The Finnish company said that the all-share transaction will be "on the basis of 0.55 of a new Nokia share for every share of Alcatel-Lucent," which it said is valued at 15.6 billion euros ($16.5 billion).

The deal has been approved by each company's board of directors and is expected to close in 2016 subject to regulatory approval.

Wednesday's announcement follows confirmation a day earlier that Nokia was in advanced talks to buy the ailing Alcatel-Lucent, in a bid to become a leading global networks operator.