Friday, 13 December 2013

Indian court allows Nokia to transfer its Chennai plant to Microsoft

Nokia’s plant in India that is located in the city of Chennai was under a dispute with tax authorities in the sub-continent. As a result, the asset, which was one of the biggest Nokia manufacturing plants was sized by the local government. The seizure could prove problematic as some speculated it might prevent the Microsoft acquisition of the Nokia mobile division.

The potential obstacle is now gone, however, as Nokia has won its appeal to lift the seizure of the plant, which allows the company to transfer the unit to Microsoft as a part of its deal.
The tax dispute against Nokia will not end here and if the company loses it, Nokia might end up paying about $3.4 billion in penalties and interest to the government of India. Nokia has deposited $367.17 million in an escrow account to liberate its plant.

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