State buys Nokia's submarine cable subsidiary | EUROtoday

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The Calais (Pas-de-Calais) cable production plant, Alcatel Submarine Networks, December 9, 2022.

Despite the political context, enterprise continues for the Ministry of the Economy. Bercy introduced, Thursday June 27, that it had signed with Nokia a promise to buy 80% of the capital of Alcatel Submarine Networks (ASN), the tools producer's subsidiary for the manufacturing and set up of submarine telecommunications cables. Finnish.

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The transaction values ​​the corporate at round €350 million, together with debt. Once that is deducted, the State Participation Agency (APE), which is main the transaction, pays round €100 million to purchase this block. The sale needs to be definitively signed on the finish of the 12 months. Nokia will preserve the remaining 20% ​​of the capital, however the State has choices to purchase this residual share sooner or later.

The Finnish group, which inherited ASN in 2015 on the time of the acquisition of Alcatel-Lucent, started serious about the way forward for this firm inside its scope round two years in the past. “The potential buyers did not completely suit us, which is why we decided to make this acquisition directly”explains Bercy, satisfied of the strategic nature of this firm: 99% of worldwide Internet site visitors passes by submarine cables and, with its maritime facade, France is a nerve heart of the community.

Turnover has doubled in 5 years

Furthermore, the sabotage, in September 2022, of the Nord Stream gasoline pipeline, within the Baltic Sea, confirmed the potential vulnerability of underwater infrastructure. However, along with its cable manufacturing plant in Calais (Pas-de-Calais), the biggest in Europe, ASN has a fleet of seven vessels, together with two specifically supposed for restore or upkeep operations. .

ASN, which Nokia had already tried to promote on the finish of 2018, has benefited lately from an explosion in its market pushed by digital giants, corresponding to Google and Facebook, which have turn into the biggest installers of submarine cables on this planet. .

Its turnover has doubled in 5 years, reaching 1.12 billion euros in 2023, and the cable firm has invested greater than 100 million euros in 2021 and 2022 to extend the manufacturing and storage capacities of its Calais manufacturing unit, the place it straight employs simply over 600 folks and round 400 subcontractor staff. ASN, which additionally has a manufacturing unit in Greenwich, close to London, to fabricate amplifiers, shares the market with the American SubCom and the Japanese NEC.

“No subject on staffing”

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