Finnish telecommunications company Nokia on Monday said it had agreed to buy German engineering giant Siemens’ 50 percent stake in their mobile broadband joint venture NSN for 1.7 billion euros ($2.2 billion).<\/p>\n
Once the deal was concluded in the third quarter of 2013, “Nokia Siemens Networks will become a wholly owned subsidiary of Nokia”, both companies said in a statement.<\/p>\n
Siemens’ decision to sell its stake comes as part of a strategic repositioning in the market: it announced in June it would shut down its loss-making solar energy unit after failing to find a buyer.<\/p>\n
The NSN deal will allow Nokia, which has been subject to speculation it could be up for sale, to take full control of its most profitable business.<\/p>\n
Once the star performer on the Helsinki stock exchange, Nokia has seen its market value has plunge 30 percent in the past two years.<\/p>\n
The firm reported a net loss in seven of the past eight quarters amid fierce competition from Apple’s high-end iPhone and Samsung’s Galaxy.<\/p>\n
The NSN joint venture, which specializes in high-speed mobile broadband, was set up in 2007 and the partnership agreement expired in April.<\/p>\n
Nokia said NSN would retain its headquarters in Espoo, Finland and press on with its ongoing restructuring plan, which includes the closure of 16 sites in Germany, shedding 1,000 jobs.<\/p>\n
The buy-out will see Siemens receiving 1.2 billion euros in cash at the closing of the transaction, the statement added. The remaining 500 million euros will be paid through a secured loan from Siemens due one year from closing.<\/p>\n
Nokia said it had obtained bank financing for the cash portion.<\/p>\n
Source:Agence France Presse<\/p>\n","protected":false},"excerpt":{"rendered":"
Finnish telecommunications company Nokia on Monday said it had agreed to buy German engineering giant Siemens’ 50 percent stake in their mobile broadband joint venture NSN for 1.7 billion euros ($2.2 billion).<\/p>\n
Once the deal was concluded in the third quarter of 2013, “Nokia Siemens Networks will become a wholly owned subsidiary of Nokia”, both companies said in a statement.<\/p>\n
Siemens’ decision to sell its stake comes as part of a strategic repositioning in the market: it announced in June it would shut down its loss-making solar energy unit after failing to find a buyer.<\/p>\n","protected":false},"author":9,"featured_media":10385,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business_news"],"_links":{"self":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=188"}],"version-history":[{"count":0,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/posts\/188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=\/wp\/v2\/media\/10385"}],"wp:attachment":[{"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qatar-news.org\/qatarnewsEn\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}