After eight years of uncertainty, the French state acquisition of Alcatel Submarine Networks (ASN)—the submarine telecom cable subsidiary of Finnish group Nokia—gives 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 ASN’s capital at its Calais plant. ASN originally belonged to Alcatel, then Alcatel‑Lucent, before Nokia purchased the group in 2016.
Nokia described the sale of ASN to the French state as the outcome of extensive talks and called the French government “the most relevant custodian” for this strategic business. The transaction secures ASN’s future under public ownership while keeping Nokia involved as a minority partner.
Financial terms and Nokia’s remaining stake
French outlet Le Monde reported that the deal values the transaction at around €100 million, with the state also taking on roughly €250 million of ASN’s 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.
The structure gives France direct control over a key subsea telecom asset while allowing a gradual transition from Nokia’s ownership. It also relieves Nokia of significant financial exposure tied to ASN’s debt.
Strategic asset for France’s subsea telecom ambitions
Since completing the Alcatel‑Lucent acquisition in 2016, Nokia had looked to divest ASN but struggled to find a long‑term buyer. At one point, observers expected Nokia to retain the company indefinitely, despite its non‑core status within the wider group.
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.
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