Deal is expected to be finalised in Q3, with name phased out from new company name and branding
Nokia is acquiring Siemens’ 50 per cent in their joint venture Nokia Siemens Networks for €1.7 billion (£1.46 billion).
The deal is expected to be finalised in Q3, with Nokia Siemens Networks (NSN) becoming a wholly owned subsidiary of Nokia. The Siemens name will be phased out from NSN’ company name and branding, with the two planning to confirm the new name and brand at this time.
Nokia plans to retain the existing management structure at NSN, with Rajeev Suri continuing as CEO and Jesper Ovesen continuing as executive chairman of the NSN board of directors. NSN’ headquarters will remain in Espoo, Finland, and its major hub located in Munich, Germany.
NSN was established in April 2007 as a joint venture combining Nokia’s Networks Business Group and Siemens’ carrier-related operations for fixed and mobile networks. It now supplies telecoms infrastructure and deploys networks in more than 150 countries.
Nokia president and CEO Stephen Elop (pictured) said: “With its clear strategic focus and strong leadership team, Nokia Siemens Networks has structurally improved its operational and financial performance. Furthermore, Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity. Nokia is pleased with these developments and looks forward to continue supporting these efforts to create more shareholder value for the Nokia group.”
Siemens CFO Joe Kaeser added: “With this transaction, we continue our efforts to strengthen our focus on Siemens’ Core areas of energy management, industry and infrastructure as well as healthcare. The full acquisition of Nokia Siemens Networks by Nokia offers an attractive opportunity to actively shape the telecom equipment market for the future and create sustainable value.”