Software giant Microsoft will buy the mobile department of the Finnish company Nokia for around 7.2 billion dollars. This is big news in the world of smartphones and for anyone interested in these industries.
However, the buying of a euro-zone company by a US company is unlikely to have a positive impact on EUR/USD, even though the deal is expected to consist mostly of cash.
The value of the deal is relatively small in terms of forex: the deal between Verizon and Vodafone is much bigger, around $58 billion, and is expected to have a minimal impact.
In addition, Microsoft is expected to allocate money for the transaction from various countries outside the US for this deal.
The third reason is the timing of the deal: the first quarter of 2014. There is still a lot of time until then.
Nokia’s workers are expected to move to Microsoft’s payroll, but also here, both companies are multinationals, and the move isn’t expected to impact currencies.
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