China Approves Microsoft's Nokia Buy with Caveat on Patent Pricing
China has finally approved Microsoft's acquistion of Nokia's devices and services business.
On China's Ministry of Commerce website, the Ministry said it would go along with the deal but tacked on a few conditions regarding pricing around the use of Nokia's significant patent portfolio.
Nokia has apparently obliged, telling China that it will not increase prices for competing smartphone makers to use its patents.
Nokia confirmed the approval in a statement on its website.
Nokia and Microsoft have now received regulatory approvals from China, the European Commission, the U.S. Department of Justice and numerous other jurisdictions.
The two companies expect the transaction to close this month.
In Novemeber of last year, Microsoft agreed to buy Nokia's devices and services business for $7.2 billion in cash. The deal comes with Nokia's license and patents, as well as the company's significant mapping business in tow.
Under the terms of the agreement, Microsoft has agreed to pay $5.13 billion to purchase substantially all of Nokia's handset division, and $2.17 billion to license Nokia’s patents.