Nokia Oyj agreed to buy Alcatel-Lucent SA in an all-stock transaction valued at 15.6 billion euros ($16.6 billion) to create the biggest maker of equipment that underpins mobile-phone networks.

Nokia’s biggest acquisition would result in a supplier that surpasses Ericsson AB and Huawei Technologies Co. in wireless- infrastructure revenue. Nokia Chief Executive Officer Rajeev Suri, who will run the enlarged company, will bolster its position in China, a market of 1.3 billion mobile subscribers, and take on contracts with the two biggest U.S. carriers -- Verizon Communications Inc. and AT&T Inc.

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