Nokia to acquire Siemens’ 50% in JV for $2.2 bn
2 July 2013 10:36 PM GMT
Finnish telecommunications company Nokia on Monday said that it had agreed to buy German engineering giant Siemens' 50 percent stake in their mobile broadband joint venture NSN for 1.7 billion euros ($2.2 billion).
Once the deal is concluded in the third quarter of 2013, 'Nokia Siemens Networks will become a wholly owned subsidiary of Nokia', both companies said in a statement.
Siemens' decision to sell its stake comes as part of a strategic repositioning in the market: it announced in June it would shut down its loss-making solar energy unit after failing to find a buyer.
The NSN deal will allow Nokia, which has been subject to speculation it could be up for sale, to take full control of its most profitable business.
Once the star performer on the Helsinki stock exchange, Nokia has seen its market value has plunge 30 percent in the past two years.
Once the deal is concluded in the third quarter of 2013, 'Nokia Siemens Networks will become a wholly owned subsidiary of Nokia', both companies said in a statement.
Siemens' decision to sell its stake comes as part of a strategic repositioning in the market: it announced in June it would shut down its loss-making solar energy unit after failing to find a buyer.
The NSN deal will allow Nokia, which has been subject to speculation it could be up for sale, to take full control of its most profitable business.
Once the star performer on the Helsinki stock exchange, Nokia has seen its market value has plunge 30 percent in the past two years.
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