Nokia has signed an agreement to acquire Siemens’ entire 50% stake in their joint venture (JV), Nokia Siemens Networks (NSN), for €1.7bn.
Upon the completion of transaction in third quarter of 2013, Nokia will pay Siemens about €1.2bn, with remaining €500m to be paid as a secured loan from Siemens during late 2013.
Nokia president and CEO, Stephen Elop, said that with the 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," Elop said.
Nokia will also continue to consolidate Nokia Siemens Networks for financial reporting purposes while strengthening the firm as a more independent entity.
With the operational headquarters remaining in Espoo, Finland, Nokia would support the existing management plan, which includes the already underway NSN restructuring plan that remains unaffected following the latest move.
Siemens CFO Joe Kaeser said that the transaction allows strengthening its focus on core areas of Energy management, Industry and Infrastructure as well as Healthcare.
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"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.
