Siemens, Nokia joint venture to start on April 1
Siemens, Nokia joint venture to start on April 1
Quote:
Wed Mar 14, 2007 7:13 PM
FRANKFURT, March 14 (Reuters) - Finnish handset maker Nokia (NOK1V.HE: Quote, Profile , Research) and German conglomerate Siemens (SIEGn.DE: Quote, Profile , Research) will start operations of their telecoms-network joint venture on April 1, they both said on Wednesday.
The 50-50 joint venture, which will be the world's second-biggest mobile-networks company and the third-biggest in fixed-line infrastructure, had been due to begin at the start of 2007 but was delayed by a corruption investigation at Siemens.
The companies said they had agreed to increase their respective net asset contributions to Nokia Siemens Networks, with Siemens contributing 2.4 billion euros ($3.17 billion) and Nokia 1.7 billion euros.
"In taking this step, we are dramatically strengthening our market position and creating sustainable value," Siemens Chief Executive Klaus Kleinfeld said in a statement.
The designated head of Nokia Siemens Networks, Simon Beresford-Wylie, told Reuters last month that Nokia and Siemens had already won joint orders in markets where competition authorities have approved the merger.
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