Taipei: Taiwan's Fair Trade Commission (FTC) announced that it has approved the acquisition of California-based Infinera Corp. by Finland's Nokia Corp.

According to Focus Taiwan, the acquisition required FTC approval despite being an extraterritorial merger because both companies have subsidiaries operating in Taiwan. The FTC clarified that the merger would not hinder competition or create barriers to market entry, as there are other competitive entities in the sector. Additionally, telecommunications and cable television operators, which are downstream trade partners, possess significant bargaining power.

The FTC noted that Nokia and Infinera are key players in the optical transmission equipment market and are currently competitors. However, the companies focus on different technological aspects and product applications, resulting in minimal overlap in customer bases and operational regions. The FTC highlighted that the merger would foster innovation and accelerate product development within the rapidly advancing optical transmission sector. These advancements are anticipated to generate economic benefits that surpass any potential drawbacks from reduced competition.

Nokia aims to acquire full control of Infinera by obtaining 100 percent of its market shares, which constitutes a merger under Article 10 of Taiwan's Fair Trade Act, the FTC explained. Nokia had initially announced its intention to acquire Infinera for US$2.3 billion in June 2024, with the deal expected to be finalized in the first half of the year.