Nokia's Deal With Microsoft May Not Include India Plant

Nokia said that its Indian phone production plant probably won't be included in its deal with Microsoft once it's completed on April 25.

The plant won't be included due to ongoing tax disputes, according to Reuters. Nokia will instead operate the factory as a contract manufacturing unit for Microsoft after the deal.

"It's highly unlikely that the plant will transfer, given that the (deal) closing with Microsoft is tomorrow," a spokeswoman for the Finnish company's Indian unit said, according to Reuters. "If the asset doesn't get transferred, we are entering into a service agreement with Microsoft."

Nokia employs approximately 6,600 employees the plant, which is one of its biggest factories in the world.

Nokia has offered a voluntary retirement arrangement to factory employees earlier this month, according to Reuters.

Nokia lawyers has said to the Delhi High Court that the company can run the plant as a contract manufacturer in the event that it isn't allowed to be transferred to Microsoft.

Nokia agreed to the $7.5 billion deal with Microsoft in September.

"This acquisition will help Microsoft accelerate innovation and market adoption for Windows Phones. In addition, we look forward to introducing the next billion customers to Microsoft services via Nokia mobile phones," Brad Smith, Microsoft general counsel and executive vice president for corporate and legal affairs, said in a blog post.

Microsoft will run Nokia's site and social media webpages for at least a year, according to Smith.