Tuesday, August 25, 2009

Should Nokia and Alcatel-Lucent Merge?

As Ericsson is currently busy acquiring Nortel's assets, its smaller competitors are struggling to stay afloat. It is suggested that Nokia and Alcatel-Lucent should merge. The two companies being ranked as number 2 and 4 in their sectors are both struggling and would have a lot to gain by pairing up according to Reuters, however as they have seen many failed mergers in their industry such a merger may be unlikely. Yet a merging of the two companies would allow them to grow and compare to Ericsson while preventing Huawei from gaining too much busy in the industry thus causing the two to fail even more. Is it a good idea for the two to collaborate?

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