Nokia and Alcatel-Lucent have today confirmed both companies are currently in talks for the former to acquire the French telecom equipment maker. But no, the deal is not to make new phones.
The two parties have revealed they're in advanced discussions on a full merging, which would take form as a public exchange offer by Nokia for Alcatel-Lucent. It's still early days, however, and talks very well could fall through. That said, it's also worth reiterating that Nokia is probably not looking to make new mobile devices.
Alcatel-Lucent is the French telecoms equipment company, not to be confused with Alcatel OneTouch, which is a joint venture with TCL Communication. The two companies are likely eyeing up the opportunity to combine forces to be in a better position to compete against the likes of Ericsson and Huawei, the latter recently making moves to push into Europe.
It has been reported that a possible deal could hit political barricades, namely the French government attempting to preserve a company that it sees as a strategic brand with thousands of jobs located within the region. This deal could also be related to reports of Nokia looking to sell off its mapping business, but talks between the two companies have been an ongoing process for some time, so we'll have to hold off for now and wait.