The US Department of Justice has given its approval to Microsoft's proposed acquisition of Nokia Devices & Services business. As with the recent Nokia shareholder vote, US regulatory approval is an import way point on the way to the formal completion of the deal. The next major stage should be approval from the European Union regulators, something that is expected to be announced in the next two weeks.

The US Department of Justice officially approved the deal on November 29th, as noted in the Federal Trade Comission's Bureau of Compeition notification, which was released yesterday. 

After Microsoft has received regulatory approval for the proposed acquisition the final stages of preparation for completion can proceed. Microsoft has said that it expects to complete the acquisition in the first quarter of 2014.

As a reminder here's how we first described the proposed transaction:

As a result of the transaction Microsoft will acquire "substantially all of Nokia's Devices & Services business". This includes the Mobile Phones (Series 40) and Smart Devices (Windows Phone) business units, Nokia's design team, operations including all Nokia Devices & Services production facilities, Devices & Services-related sales and marketing activities, and related support functions. Consequently, approximately 32,000 people are expected to transfer to Microsoft, including approximately 4,700 people in Finland.

As part of the transaction, Nokia will also grant Microsoft a 10 year non-exclusive license to its patents and Microsoft will grant Nokia reciprocal rights related to HERE services. Further, Microsoft will have an option to extend this mutual patent agreement to perpetuity. Of the transaction cost of €5.44 billion, €3.79 billion relates to the Devices & Services business, and €1.65 billion to the mutual patent agreement.

Microsoft will also become a strategic licensee of the HERE platform, paying Nokia for an initial four year license. The revnue stream for HERE will be equivalent to the internal revenue streams that Devices & Services currently transfer to the HERE and will be a key factor if maintaining the business viability of HERE.

Microsoft has also agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products, but Nokia will continue to own and maintain the Nokia brand.  The Nokia brand will continue to be used on Series 30 and Series 40 products, but the indication are that Windows Phone products will switch to the Microsoft brand, although it seems likely the Lumia sub-brand will continue.