ASN is not Nokia’s core business, so after the sale the company will be able to focus more on network infrastructure solutions in key markets and improving the profitability of the Network Infrastructure business group, which will remain divided into three divisions: Fixed Networks, IP Networks and Optical Networks. Net sales of the group as a whole are expected to fall by €1 billion, but the operating return on sales will increase by 100-150 basis points.
Image source: ASN
France’s ASN is one of the world’s leaders in turnkey submarine network communications systems. Owned by Nokia France (formerly Alcatel-Lucent), it has grown revenues significantly and is well positioned to continue growing in the growing submarine cable market. ASN operates a fleet of seven ships and announced the acquisition of two more vessels in 2021.
France has long-term plans to develop critical telecom infrastructure and guarantees the continued operation of ASN to customers, employees and partners. The French authorities have also agreed to invest in the development of the company’s business. APE already manages a large portfolio of assets in a wide range of industrial sectors, services and businesses.
The deal is expected to close in late 2024 or early 2025, pending consultations with interested parties and regulatory approval. Nokia says its Network Infrastructure division will benefit from the sale, focusing on other projects, although ASN is currently in a very strong position. ASN itself sees the deal as a new phase in the development of the cable company. The French authorities are also pleased with the agreement. Their representative stressed that ASN is not only one of the world leaders in the submarine cable market, but also the only company of its kind in Europe.