Nokia to acquire Siemens' stake in NSN

Deal expected to close in third quarter of the year

Tags: FinlandGermanyMergers and acquisitionsNokia CorporationNokia Siemens NetworksSiemens
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Nokia to acquire Siemens' stake in NSN Nokia CEO Stephen Elop said that NSN had improved its financial performance since restructuring. (Getty Images)
By  Roger Field Published  July 1, 2013

Finnish mobile phone maker Nokia has agreed to acquire Siemens' entire 50% stake in their joint venture, Nokia Siemens Networks, for EUR1.7bn.

Nokia will pay EUR1.2bn in cash at the closing of the transaction, while the balance of EUR500m will be paid in the form of a secured loan from Siemens due one year from closing.

Nokia has bank financing for the EUR1.2bn cash portion. The deal is expected to close in the third quarter of the year, and Nokia Siemens Networks will become a wholly owned subsidiary of Nokia.

The acquisition has been approved by the board of directors of Nokia and the managing and supervisory boards of Siemens, and is subject to the customary regulatory approval process.

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 is pleased with these developments and looks forward to continue supporting these efforts to create more shareholder value for the Nokia group."

Joe Kaeser, Siemens CFO, said: "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. 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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