Nokia wins the right to transfer India plant to Microsoft Corporation (MSFT)
Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation has won the right to transfer a Nokia plant in Chennai, India to Microsoft. A Delhi High Court lifted a freeze on Nokia’s assets in India.
This means that a giant hurdle has been removed for Microsoft’s $7.2 billion acquisition of Nokia’s wireless division. The court ordered Nokia to set aside $365 million for potential tax liabilities.
The factory is based in Chennai, India and is one of Nokia’s largest handset manufacturing plants. The plant was seized along with other assets in India by tax authorities.
This past March, Nokia received a bill of over $340 million in back taxes over five fiscal years. It is unknown how large the tax liabilities would be.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry