The redemption Nokia by Microsoft is delayed due to the problems that exist with the Indian government in tax matters, for which there seems to be no development.
According to a report by the Indian Economic Times, the Indian government is setting a series of financial conditions to give the "green light" to the release of Nokia's facilities in Chennai and thus to complete the procedure emarket from Microsoft.
The Indian government's tax receivables amount to $116 million, mainly as guarantees against future taxes. At the same time, the local government of Chennai is putting its own financial conditions to Nokia India. The whole matter is also complicated by the fact that Nokia's appeals to the Indian courts have not been favorably treated.
Both Nokia and Microsoft maintain that the involvement in India will not further delay the completion of the acquisition. For this reason they are looking at the possibility of the Chennai factory staying except of the overall deal, at least for now.
At the same time, if the problems continue, even the possibility of closing the plant is being considered. In any case, if facilities in Chennai are out of agreement, the cost of the acquisition is expected to fall by almost one billion dollars. Please note that the initial cost of the deal amounts to 7,2 billion dollars.
In any event, the plant will become active or inactive in Microsoft's ownership because, due to tax breaks, Nokia can not sell it to a third party.
It is worth mentioning that 8.000 employees are employed in the facilities at issue, while companies involved in supplying and delivering services in Chennai employ other 22.000 employees.
Source: naftemporiki.gr
