Helsinki, April 15 (IANS): Finnish telecommunication giant Nokia announced on Wednesday the acquisition of French rival Alcatel-Lucent in a deal worth 15.6 billion euros ($16.6 billion).

The deal, the biggest in the sector in more than a decade, is set to be finalised through a public exchange offer of shares between the two companies, whereby Alcatel-Lucent shareholders will receive 0.55 shares in the new company for each share of the old one, Efe news agency reported.

According to the transaction, Nokia shareholders would own 66.5 percent of the merged company, while the shareholders of the Franco-American rival would own 33.5 percent, creating a giant with roughly 114,000 employees, and sales in the ballpark of 26 billion euros.

The new company, set to be called Nokia Corporation and based in Finland, will be the second largest telecom equipment manufacturer, behind Sweden's Ericsson.

"Together, Alcatel-Lucent and Nokia intend to lead in next-generation network technology and services, with the scope to create seamless connectivity for people and things wherever they are," Rajeev Suri, president and chief executive officer of Nokia, stated.