After a few hiccups in the form of waiting for confirmation from Asian markets to have the deal go through, Microsoft confirmed earlier today that the $7.2 billion acquisition transaction will go through April 25.
Microsoft’s plans to acquire Nokia’s mobile and services business were first announced in September 2013. While the original goal was to take over the time mobile phone manufacturer’s facilities and such, changes in the deal on paper sees Microsoft not taking over the South Korea-based plant.
While there has been resistance from the Samsung/Google camp over potential “patent abuse,” last month there was some resistance toward the deal in South Korea with the government’s Korean Electronics Association. The organization has representatives from various South Korean tech giants—including Samsung and LG—who have all expressed concerns over the deal as well. This could be the reason for both the hold up going into April and why Microsoft didn’t pick up the facility.
Relating it to the tax and pricing issues Sony faced by having no manufacturing plant in Brazil—resulting in a console that was close to $2000 during around launch—extra prices due to taxes and fees would be a good strategy on the part of the KEA to make it difficult for Microsoft to compete against native phones due to higher prices.
In short, a native plant would keep costs down and eliminate the import costs on the finished phones and other goods.
Issues with South Korean manufacturers aside, other deals put into place include 21 China-based employees joining Microsoft and the company handling Nokia’s social media assets for a year.