Nokia opens a new chapter as it closes Microsoft deal

In the final stage of what has become a painful story for Finland's Nokia, Microsoft will wrap up its 5.4 billion euro ($7.5 billion) takeover of the handset business this coming Friday. But industry-watchers believe that rather than closing the book on the company, the deal could give Nokia a new lease of life.

Microsoft said in a statement on Monday that it had "completed the steps necessary" to seal the deal for Nokia's devices and services business on April 25. "The completion of this acquisition follows several months of planning and will mark a key step on the journey towards integration," the technology giant said.

A Microsoft Office logo sits on the touchscreen display of a Nokia Lumia 720 Windows smartphone.
Paul Thomas | Bloomberg | Getty Images

The move will end a long-running saga for Finland's Nokia, which has seen its share of the mobile phone market eroded over the past few years by the likes of Apple and Samsung.

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It also paves the way for Nokia to announce a new chief executive, with the company's head of solutions and networks, Rajeev Suri, linked with the top spot.

Nokia 'rollercoaster'

Analysts said offloading its lossmaking devices arm would help stabilize Nokia.

"If you look at the past few years it has been a rollercoaster ride for Nokia," Sami Sarkamies, senior analyst at Nordea Markets, told CNBC in a phone interview. "We have seen huge disappointments in the handset business, but the new company will have a stable balance sheet and it will be holding profitable businesses."

Nokia's business has already changed direction several times during its lengthy history , which started in 1865 with the formation of paper-making company Nokia AB. Another firm called the Finnish Rubber Works was set up and manufactured rubber products such as tires and boots.

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At the beginning of the twentieth century, Finnish Cable Works was formed, the basis of Nokia's cable and electronics business. The three companies merged in 1967 as the communications revolution began to unfold.

Nokia void

Nokia's headquarters are in a Finnish city called Espoo, where it dominated the technology scene for several years. Recent job cuts and the shrinking of its business have been negative for the area, but other technology firms are filling the void.

Smartphone maker Jolla is one such company, with around 90 percent of its workforce made up of ex-Nokia employees. Angry Birds-maker Rovio is another key part of the Finnish technology landscape in Espoo, taking advantage of the area's technology expertise.

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Microsoft's Nokia purchase will be 'train wreck': Pro
Microsoft's Nokia purchase will be 'train wreck': Pro

Sam Gee, senior technology and media analyst at Mintel, said Nokia's difficulties could provide opportunities for its Finnish counterparts.

"As with the demise of any massive company, there will always be opportunities in taking over market space. But also as Nokia repositions, it will look to change its corporate strategies, they (Nokia) will look to partnerships or acquisitions," he told CNBC in a phone interview.

Read MoreCan the Finnish fill the void left by Nokia?

Deal tweaks

The Nokia-Microsoft deal was approved by Chinese regulators earlier this month. It is now likely to go ahead without the transfer of a large factory in Chennai, India, which is part of a separate tax dispute.

Under tweaks to the agreement, Microsoft will not take control of Nokia's Korean manufacturing facility as originally planned. Microsoft will also take on 21 employees from Nokia's chief technology office in China.

In addition, the website domain name, as well as Nokia's social media sites, will be managed by Microsoft for up to a year after the deal.

Nokia shares traded flat last year until September, when the Microsoft deal was announced. Stocks then almost doubled from 3.04 euros ($4.20) to 5.82 euros per share.

On Tuesday this week, Nokia shares traded 1.9 percent higher on the day, at 5.33 euros.