Alcatel and Lucent merged in 2006 — the result lost €1.4B in a single year

Alcatel and Lucent Technologies merged on 1 December 2006 in a deal valued at $13.4 billion. The merger was billed as a 'merger of equals' that would create a global telecom equipment powerhouse with combined revenues of $25 billion, capable of competing with Cisco and Huawei. Alcatel brought strength in Europe and wireline networks; Lucent brought the US market and Bell Labs research.

The integration was a disaster from the start. The two companies had incompatible product lines, overlapping R&D that was never rationalised, and a clash of French and American corporate cultures. Customers were confused by competing product roadmaps. The combined company lost money every year from 2007 to 2011. Revenues fell from $25 billion at merger to $14.4 billion by 2012.

In 2008, CEO Patricia Russo and Chairman Serge Tchuruk both resigned after the company posted a net loss of €3.5 billion for 2007. The company sold its Genesys call-centre unit for $1.5 billion in 2011 to raise cash. In October 2013, it announced plans to cut 10,000 jobs — 14% of its 72,000-strong workforce. The 'Shift Plan' restructuring failed to restore profitability.

In April 2015, Nokia agreed to acquire Alcatel-Lucent for €15.6 billion. The acquisition was completed in January 2016, and the Alcatel-Lucent brand was retired in November 2016. The merger that was supposed to create a global champion ended with the French company being absorbed by its Finnish competitor at a fraction of the combined value the merger was meant to create.