Update: Microsoft has informed that it will be closing the acquisition this Friday (April 25). It also noted that while the original deal didn’t include Nokia’s online assets, both the companies have agreed that Microsoft will be managing the Nokia.com domain and its social media properties for up to a year.
In addition to this, Microsoft is also not acquiring Nokia’s Korean manufacturing facility. A Nokia spokesperson told WSJ that Microsoft changed its mind about acquiring this facility due to “excess capacity”.
The status of Nokia’s Chennai plant however is still unclear. A Nokia spokesperson told Medianama that they are still evaluating their options and engaging with the Govt. and tax authorities on this but it cannot comment on the future of this facility yet.
Earlier (April 21): Nokia’s devices and services business will be renamed as Microsoft Mobile Oy, after Microsoft closes the $7.2 billion acquisition later this month, the company has informed in an email to its supplier base. (hat tip – NokiaPowerUser). Microsoft Mobile Oy will be a subsidiary of Microsoft Corp and based out of Espoo, Finland.
Nokia has informed that Microsoft will assume all rights, benefits and obligations of the Nokia Devices and Services business, including Nokia’s agreements with suppliers, customers and partners which pertains to the Devices and Services business as per the terms of the agreement.
In a separate email to users with a Nokia account, Nokia has also informed that its Devices & Services business will become part of Microsoft Mobile Oy, which will assume the responsibility for the user’s personal data and contractual relationships for the products & services related to this business. (A copy of the email below).
Nokia also noted that it will however continue to run its others businesses including HERE location-based products and services, its Advanced Technologies business and its Nokia Siemens Networks business, which are not part of the Microsoft acquisition.
Nokia’s Chennai Plant?
It’s not clear as to what Nokia plans to do with its Chennai plant, considering that the plant is still stuck in a legal dispute as of now in Supreme Court and at Madras High Court. Last month, the company had filed a writ to the Madras High Court protesting the Rs 2,400 crore tax claim from the Tamil Nadu government. (A timeline on Nokia’s tax case here)
There has been reports of Nokia leaving out the plant from Microsoft deal, reducing it to a contract manufacturing unit. Earlier this month, Prakash Katama, Director of Nokia India’s Chennai plant had also quit the company and the position was taken up by V Sembian, head of product and process engineering.
Last week, a source-based PTI report had also suggested that around 700 trainees have opted for voluntary retirement package offered by Nokia. While there were allegations that these employees were forced to opt for VRS, Nokia India had mentioned that the scheme was only optional. Nokia’s Chennai plant employs around 8,000 persons.
Nokia’s Email to users with Nokia Account
We wanted to share some important information about your data privacy and contracts.
Nokia currently expects to complete the sale of its Devices & Services business to Microsoft in April 2014. With the completion of this transaction, a Microsoft Finnish affiliate* assumes responsibility for your personal data and the contractual relationships for the products and services related to this business. Microsoft cares deeply about your privacy and the protection of your personal data and will continue to collect and use your personal data in the same ways and for the same reasons as Nokia, and you should experience no difference as a result of the sale.
Also, please note that Nokia will continue to run its businesses, including HERE location-based products and services, which are not part of the Microsoft acquisition. The responsibility for your personal data and your contractual relationship relating to these Nokia products and services remains with Nokia. Nokia continues to be committed to the highest standards to protect your privacy and your personal data.
We wanted to give you notice of these changes. Our commitment to your privacy remains paramount. To learn more about Microsoft’s andNokia’s privacy policies and service terms, click here. http://www.nokia.com/global/
You may also contact us at: Microsoft Mobile Oy, c/o Privacy, Keilaranta 7, 02150 Espoo, Finland or Nokia Corporation, c/o Privacy, Keilalahdentie 4, 02150 Espoo, Finland.
Vice President, Chief Ethics and Compliance Officer
Chief Privacy Officer
* With the completion of this sale, the Nokia Devices & Services business will be part of this Finnish entity, Microsoft Mobile Oy, a subsidiary of Microsoft Corp.