Nokia buys operations from Siemens
HELSINKI - The Associated PressNokia said today that it will buy Siemens’ half of their joint network operations in a 1.7 billion euros ($2.22 billion) deal.
The transaction, to be completed during the third quarter this year, will mean that the joint venture between Nokia and Germany’s Siemens will become a wholly owned subsidiary of the Finland-based company.
The network operations was loss making for years but recently has shown signs of improvement after restructuring and substantial job cuts. CEO Stephen Elop said the company had also made strides in developing LTE, or long-term evolution, high-speed data. “Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity,” Elop said. “Nokia is pleased with these developments and looks forward to continue supporting these efforts to create more shareholder value for the Nokia group.”
Nokia is struggling in the smartphone market against Samsung, Apple’s iPhone and handsets that use Google’s Android software.