Nokia Siemens delays $1.2b Motorola acquisition
Chinese anti-monopoly regulators are still reviewing the deal
Nokia Siemens Networks has delayed its $1.2 billion acquisition of the telecom network equipment arm of Motorola, as they wait for permission from the Chinese regulator, according to a Nokia Siemens press release.
The company now expects its acquisition to be completed in the first quarter of 2011.
"This delay is disappointing, but we're looking forward to completing the acquisition early in the new year," Rajeev Suri, chief executive officer of Nokia Siemens Networks, said in the statement.
The company was initially expecting to close the deal by the end of 2010, but the Anti-Monopoly Bureau of the Ministry of Commerce of China is still conducting its review process.
"We are continuing to work closely with the authority in China to finalise the clearance process in that country. We recognise its efforts in addressing this case as a matter of importance," said Suri.
According to the press release, around 7,500 employees will transfer from Motorola's public carrier wireless network infrastructure business, to Nokia Siemens Networks, once the transaction is complete.
These employee transfers include moves from the large research and development sites in China, India and the US.
The deal will make Nokia Siemens the second-largest mobile telecom gear-maker after Huawei and strengthen the company's position against its rivals in the Chinese market.