Finnish equipment vendor Nokia has agreed to purchase the 50% stake it does not already own in joint venture Nokia Siemens Networks from partner Siemens for €1.7bn, with the deal expected to close in the third quarter of this year.
Discussing the reasons for the purchase, Nokia CEO Stephen Elop mentioned progress made by NSN in its operational and financial performance, and its “clear leadership position in LTE, which provides an attractive growth opportunity”.
Under the terms of the agreement, the Siemens name will be phased out from NSN’s company name and branding, with new versions expected to be announced when the transaction is completed later this year.
The joint venture (established in 2007) will retain its operational headquarters in Finland, and will continue to have a strong regional presence in Germany, including its major hub in Munich.
For its part, Siemens says that it will now focus on its core business areas of energy management, industry, infrastructure and healthcare.