Nokia has confirmed that it intends to acquire the ailing French telecom company Alcatel-Lucent.

The Finnish firm has got its sights set on becoming a leading global networks operator.

Alcatel-Lucent shareholders would own 33.5 percent of the fully diluted share capital of the combined company.

Nokia shareholders would have 66.5 percent.

The deal has been rubber stamped by each company’s board of directors.

The agreement is set to be closed in 2016, subject to other approvals coming through.