Alcatel Submarine Networks (ASN), a global leader in the submarine cable industry and a provider of critical infrastructure for global internet connectivity, was the focus of a strategic and high-stakes transaction for which Nokia Corporation engaged Relians to provide advisory support on its transfer to the French State’s investment agency, Agence des Participations de l’État (APE).
This mandate unfolded in a complex institutional and geopolitical environment, at the crossroads of digital sovereignty, national security, industrial policy, and economic diplomacy. It required the full deployment of our expertise in strategic advisory, institutional engagement, and the structuring of high-stakes transactions.
Strategic Context and Stakes of the Alcatel Submarine Networks Transaction
Alcatel Submarine Networks is a central player in the global digital infrastructure landscape. With over 800,000 kilometers of undersea optical fiber cables deployed worldwide, Alcatel Submarine Networks plays a pivotal role in the transmission of international data flows. With annual revenues exceeding €1 billion and a valuation estimated at €350 million in the context of this deal, the company represented not only a major industrial and technological asset, but also a geopolitical one.
At the time of the transaction, the global environment was marked by severe geopolitical instability-including the war in Ukraine and escalating tensions between global powers-raising significant concerns around global supply chains. Against this backdrop, the French government expressed its clear intent to regain control over critical digital infrastructure. Alcatel Submarine Networks, due to its essential role in securing and maintaining resilient international communications, was identified as a top strategic priority.
Relians’ Mandate for Nokia Corporation
From the outset, Relians worked to identify the full range of legal, institutional, and political factors that would shape the outcome of the transaction. We collaborated closely with Nokia’s leadership, including the M\&A, Legal, and Corporate & Public Affairs teams, to ensure a seamless and controlled process aligned with the unique regulatory and political environment in France.
Our mission was structured around three main pillars:
We conducted a detailed analysis of the French State’s expectations and the applicable regulatory constraints associated with the transfer of such a sensitive asset. This work allowed us to identify key institutional stakeholders-including the Presidency of the Republic, the Prime Minister’s Office, the General Secretariat for National Defense and Security (SGDSN), and the Ministry for the Economy and Finance-and to delineate the red lines concerning national security and technological sovereignty.
Relians advised Nokia on the optimal legal and financial structuring of the deal, with a dual objective: maximizing the value of Alcatel Submarine Networks, while ensuring full compliance with the French State’s specific requirements. Key considerations included governance, knowledge transfer, and the preservation of French strategic capabilities.
We led and coordinated all communications between Nokia and French public authorities. This required both technical precision and diplomatic sensitivity, particularly given the proximity of major presidential and legislative elections in France. Our role was to reassure stakeholders of Nokia’s intentions, while proactively addressing and defusing any potential political or administrative concerns. Coordination with financial (BNP Paribas) and legal (Skadden) advisors ensured a secure, coherent, and efficient handling of the entire process.
The Outcome
Thanks to this comprehensive support, Nokia was able to complete the transfer of Alcatel Submarine Networks to the French State within a three-year timeframe and at a valuation aligned with its expectations. The transaction marked a major milestone in Nokia’s strategic repositioning, allowing the group to refocus on core technological and commercial priorities while ensuring a responsible transfer of a sensitive national asset.
For the French State, the acquisition of Alcatel Submarine Networks was widely hailed as a concrete step toward reinforcing national digital sovereignty and maintaining onshore the rare and valuable expertise associated with undersea cable technology.
A Landmark Case
This operation stands as a textbook example of Relians’ ability to support transactions of exceptional strategic importance-where economic, technological, and political stakes converge. With our deep understanding of institutional mechanisms, methodical approach, and skill in building trust between public and private actors, Relians helped turn a highly complex transaction into a strategic success.
At Relians, we guide our clients through their most sensitive undertakings-offering clarity on sovereignty-related risks and creating the conditions for a constructive and secure dialogue with public authorities.
The French State signed a purchase agreement to acquire 80% of Alcatel Submarine Networks (ASN) from Nokia.
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Nokia enters into an agreement with the French State regarding the sale of leading submarine networks business ASN.
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