Nokia one step closer to clinching Alcatel takeover

The US Department of Justice said it would allow Nokia and Alcatel to combine, bringing the two phone companies closer to merger.

In April the pair announced an €15.6b all-share takeover which would leave Nokia shareholders owning about 66.5% of the combined business.

Nokia said in a statement the American decision allowing the transaction to go forward puts the companies “one important step closer” towards completion.

The combination was expected to close in the first half of 2016, subject to approval by Nokia shareholders.

Earlier on Wednesday, former Nokia chief executive Stephen Elop announced he would leave Microsoft, which he joined after it took over Nokia's devices group.

Nokia shares had fallen 0.42% to $7.11 at 16:22 on Wednesday.