Telecommunications-equipment maker Nokia Corp. has revealed that it is in advanced talks to buy French rival Alcatel-Lucent.

If a deal is reached, it will create a new global networking behemoth to rival Sweden’s Ericsson and China’s Huawei Technologies.

The deal is currently under consideration and would entail Nokia making a public offer for Alcatel-Lucent stock, the companies said.

Alcatel-Lucent’s market capitalization stands at roughly EUR11 billion, while Nokia’s market capitalization is about EUR28 billion.

The news made Alcatel-Lucent’s shares to jump up 13% to EUR4.38 in morning trading in Paris.

A Nokia-Alcatel merger deal would reshape the telecommunications-equipment business by creating a company with a combined 2014 revenue of EUR25.9 billion.

Via Market Watch