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.
