Smartphone-maker Nokia is to acquire Siemens’ 50pc stake in their joint venture, Nokia Siemens Networks, for about €1.7bn.
With the close of the acquisition – which is expected in the third quarter of this year – Nokia Siemens Networks will become a wholly owned subsidiary of Nokia.
Under the deal, the Siemens name will be phased out from Nokia Siemens Networks’ company name and branding. A new name and brand is expected to be announced when the acquisition is complete.
Nokia will continue to consolidate Nokia Siemens Networks for financial reporting purposes, as well as continue to strengthen the company as a more independent entity.
The existing management and governance structure will stay as is at Nokia Siemens Networks, whose operational headquarters will remain in Espoo, Finland.
Joe Kaeser, CFO of Siemens, said that with this transaction Siemens can focus on its core areas of healthcare, energy management, industry and infrastructure.
“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,” Kaeser said.
Nokia Siemens Networks was established on 1 April 2007, as a joint venture combining Nokia’s Networks Business Group and Siemens’ carrier-related operations for fixed and mobile networks.
Stephen Elop, president and CEO of Nokia, said 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,” Elop said.