updated 03:31 pm EST, Fri February 14, 2014
New conditions in India High Court appealed, should not affect purchase
The $7.2 billion acquisition of Nokia's phone business by Microsoft is still going ahead, and is still expected to complete sometime this quarter, the company has announced in a statement. The transfer of Nokia's Devices and Services division to Microsoft will continue, with the phone manufacturer claiming its tax issues in India will not delay Microsoft's purchase at all.
A claimed unpaid tax bill claimed to be worth around $3.4 billion is at the heart of the issue, according to the Economic Times. After an initial hearing in December, the Delhi High Court allowed for the Chennai factory to be transferred under the deal, so long as a payment to the government is made as a guarantee. Last week, the court added extra conditions that required a guarantee payment to kick in when tax authorities in the country raise the amount demanded in back-taxes. Nokia is appealing the ruling.
The statement from Nokia stresses it believes the deal will not be affected by the tax proceedings, with the timing and deal itself expected to remain as they currently are. "The transaction is still expected to close in the first quarter of 2014, subject to regulatory approvals and other customary closing conditions, irrespective of the proceedings in the Indian tax case," reads the statement.