This move will merge these two companies into one jointly owned company, taking a step toward offering a wider array of telecommunications equipment that spans fixed-line and wireless.
They have challenges to face in fixing Siemen's operations, which are struggling to turn a profit and are larger than the part that Nokia Corp. (NOK) is contributing to the venture.
According to this WashingtonPost.com article, Siemens, based in Munich, also said it is in talks with various parties to sell a majority stake in its enterprise unit, which supplies packages of telecommunications equipment and services to a wide range of companies. With the two moves, the electronics and engineering giant is dismantling its communications unit, which posted 13.14 billion euros ($16.53 billion at yesterday's noon exchange rate) in sales for fiscal 2005.
Nokia and Siemens hope to close their venture agreement by Jan. 1. The deal is subject to regulatory approval, but both sides expect a "smooth" transaction because of minimal overlap, said Joe Kaeser, Siemens's chief financial officer.
Read the full article here.
Know More about telecommunications at ITechTips.com. and LeasingNotes.
Comment Preview