An ongoing tax dispute at Nokia’s Indian mobile phone handset plant means the plant is unlikely to be included in Microsoft’s acquisition of its devices business, which is set for completion today.
Reuters reports a spokeswoman for Nokia as saying the company will instead run the factory as a contract manufacturing unit for Microsoft.
“It’s highly unlikely that the plant will transfer,” she said. “If the asset doesn’t get transferred, we are entering into a service agreement with Microsoft.”
Nokia has yet to agree to an Indian court’s condition it must pay a guarantee for potential tax dues before it transfers the plant – which is one of its biggest globally – to Microsoft.
HumanIPO reported earlier this week the deal is set to be completed today, ending months of approval processes and negotiations.
“The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration. This acquisition will help Microsoft accelerate innovation and market adoption for Windows Phones. In addition, we look forward to introducing the next billion customers to Microsoft services via Nokia mobile phones,” Microsoft said in a statement.
The deal has been approved by in China, South Africa, India, Brazil, the European Union, Israel, Turkey, Russia and the United States (US).
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