NOKIA TO PAY UKP34m CASH FOR UK CELLULAR PHONE MANUFACTURER TECHNOPHONE
Published:12-February-1991
By Computergram
The mobile phone division of Finnish conglomerate Nokia Oy is to
acquire the UK's only cellular phone manufacturer Technophone Ltd,
for UKP34m in cash. The move anticipates creation of the
pan-European, digital cell phone network and the launch of personal
communication networks, both of which are spurring on
rationalisation in all parts of the industry. Nokia Mobira is the
largest cell phone manufacturer in Europe, with a turnover of
UKP330m and Technophone, which was set up in 1984, comes a distant
second at UKP49m. Financial director of Technophone Ron Graham says
the main thing that the merger does for the two companies is to
"put them both in the number two slot in the world". The number one
position is occupied by Motorola Inc. Jorma Ollila, president of
Nokia Mobile Phones said the acquisition "will strengthen the
competitive position of Nokia and Technophone in the global
marketplace" and both companies refer to a greater concentration of
research resources that the larger company will afford. Graham says
that Technophone's headquarters will remain in Camberley, Surrey
and that it will continue to design and manufacture mobile phones
in the UK. Although both companies are working on similar projects
- the design of personal communication phones for example - Graham
says that Technophone's facilities will continue to be funded and
maintains that there is no significant product overlap.
