After eight years of uncertainty, theย French state acquisition of Alcatel Submarine Networksย (ASN)โthe submarine telecom cable subsidiary of Finnish groupย Nokiaโgives the French government majority control of this strategic subsea cable company.
French state deal for Alcatel Submarine Networks
On Nov. 5, French economy minister Antoine Armand and industry minister Marc Ferracci signed an agreement to acquire 80% of ASNโs capital at its Calais plant. ASN originally belonged to Alcatel, then AlcatelโLucent, before Nokia purchased the group in 2016.โ
Nokia described the sale of ASN to the French state as the outcome of extensive talks and called the French government โthe most relevant custodianโ for this strategic business. The transaction secures ASNโs future under public ownership while keeping Nokia involved as a minority partner.โ
Financial terms and Nokiaโs remaining stake
French outlet Le Monde reported that the deal values the transaction at around โฌ100 million, with the state also taking on roughly โฌ250 million of ASNโs debt. Nokia will retain a 20% stake in ASN, with an option for the French state to buy out that remaining interest at a later date.โ
The structure gives France direct control over a key subsea telecom asset while allowing a gradual transition from Nokiaโs ownership. It also relieves Nokia of significant financial exposure tied to ASNโs debt.โ
Strategic asset for Franceโs subsea telecom ambitions
Since completing the AlcatelโLucent acquisition in 2016, Nokia had looked to divest ASN but struggled to find a longโterm buyer. At one point, observers expected Nokia to retain the company indefinitely, despite its nonโcore status within the wider group.โ
Ultimately, the French state stepped in, viewing Alcatel Submarine Networks as a strategic national asset that underpins critical subsea connectivity and digital sovereignty. The government chose to proceed with the acquisition despite political distractions, including an upcoming election cycle.โ
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