Nokia has completed the sale of France-based Alcatel Submarine Networks, its former submarine networks business, to Agence des Participations de l’Etat (APE), the French government agency responsible for managing state-held stakes in companies of strategic importance.

ASN has manufactured over 850,000 km of submarine optical systems.

The transaction was finalized on December 31, 2024. As part of the deal, Nokia retains a 20% stake in the business and will have board representation to facilitate a smooth transition, with a plan for a future exit.

The sale, originally announced in July, valued ASN at €350 million (approximately US$375 million). ASN, which manufactures, installs, and maintains submarine cables and related equipment, has long been of interest to the French government, dating back over a decade. This interest predates Nokia’s 2016 acquisition of ASN as part of its purchase of French telecom company Alcatel-Lucent. The French state’s focus on ASN stems from the company’s large portfolio of sensitive patents, as well as concerns over intellectual property potentially falling into foreign hands.

In 2013, ASN attracted attention after reports suggested the company might use over 29,000 of its patents as collateral for a US$1.66 billion loan, intended to refinance debts and restructure amid rising competition from Chinese rivals. Over the past year, the importance of submarine cables, and the need to safeguard them, has become more widely recognized, particularly with incidents of cable cuts in the Baltic, Red Sea, and near Taiwan, which are now believed to be intentional rather than accidental. The possibility that attacks on subsea infrastructure could be used for geopolitical purposes has sparked discussions about enhancing protection measures.

While there is ongoing debate about the actual threat to global internet infrastructure, governments are increasingly looking to take a more active role in its protection. As Nokia explained in its statement when the deal was first announced, “The French State, as a stable owner with a long-term interest in the operation and maintenance of critical infrastructure, ensures continuity for ASN customers, employees, and partners.”