Investors are concerned on Thursday, as Nokia (HE: NOKIA) announced that they will not be releasing their financial outlook until April. The company is slated to acquire Alcatel Lucent (PA: ALUA) shortly before the financial release. The company caused fear among investors, as they stated that a demand for new mobile networks would slow down in China in 2016.
Nokia will acquire Alcatel Lucent in a €15.6 billion deal that will help the company compete against Ericsson (ST: ERICAS) and Huawei, a Chinese company. Limited growth and tough competition are the main reasons that the company is acquiring Alcatel Lucent so that it can compete in the market.
The company’s CEO, Rajeev Suri, stated that the company is expecting growth in Africa, India, the Middle East and North America. China was once a fast-growing market, but the CEO did state that growth in China is slated to slow in 2016. The CEO also stated that Q1 looks like it will be a challenging quarter for the company.
Shares for the company have fallen over 3% on the news, and since the announcement of the Alcatel deal in April 2015, the company’s shares have fallen 30%. Many analysts recommend that investors reduce the amount of Nokia stock that they hold due to the company not providing any financial guidance for 2016.