Nokia Buys Out Siemens For £1.5bn To Own Nokia Siemens Networks

Nokia will take full control of telecommunications equipment manufacturer Nokia Siemens Networks after agreeing to buy Siemens’ 50 percent stake in the joint-venture.

The Finnish manufacturer will pay €1.7 billion (£1.5bn) for Siemens’ holding, with the transaction expected to be completed in the third quarter of 2013 once it has received customary regulatory approval.

Nokia has said it wants to consolidate Nokia Siemens Networks for financial purposes but will also continue to strengthen the company as a “more independent entity.” This includes retaining the existing management and governance structure with CEO Rajeev Suri remaining as CEO.

Nokia Siemens Networks sale

The firm’s headquarters will remain in Espoo, Finland, but it will continue to have a strong presence in Germany centred on its main hub in Munich.

There will be some changes however. The Siemens name will be phased out, with Nokia revealing the new branding once the transaction has been concluded.

“With its clear strategic focus and strong leadership team, Nokia Siemens Networks has structurally improved its operational and financial performance,” said Nokia CEO Stephen Elop. “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.”

Nokia Siemens Networks was formed in April 2007 by the two companies, and has helped deploy mobile networks for users in more than 150 countries.

The joint venture has provided financial support for Nokia, which is currently attempting to secure a greater share of the smartphone market with a shift to Windows Phone, but Siemens has been keen to dispense with its share in order to focus on its other businesses.

“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,” explained Joe Kaeser, Siemens CFO. “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.”

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