Nokia buys Siemens out of NSN for €1.7bn

Finland’s Nokia said Monday it has agreed to acquire Siemens’ entire 50 per cent stake in equipment joint venture Nokia Siemens Networks for a total of €1.7bn.

The acquisition has been approved by the Board of Directors of Nokia as well as the Managing and Supervisory Boards of Siemens, and is subject to the customary regulatory approval process. The transaction is expected to close during the third calendar quarter of 2013 and will turn the infrastructure company back into a wholly owned subsidiary of Nokia and the Siemens name will be phased out of branding.

Stephen Elop, President and CEO of Nokia, 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 Siemens Networks was established on April 1, 2007, as a joint venture combining Nokia’s Networks Business Group and Siemens’ carrier-related operations for fixed and mobile networks.

Nokia plans to retain the existing management and governance structure at Nokia Siemens Networks, with Rajeev Suri continuing as CEO and Jesper Ovesen continuing as Executive Chairman of the Nokia Siemens Networks Board of Directors, which will adjust to the changing ownership structure.