Nokia agrees to buy Siemens stake in joint venture

PanARMENIAN.Net - Nokia is to assume full control of Nokia Siemens Networks after agreeing to buy out its partner's share of the business, Digital Spy said.

The Nordic phone maker will pay Siemens €1.7 billion (£1.4bn) for its 50% stake in the joint venture, with the transaction expected to be finalised in the third quarter of 2013.

"With its clear strategic focus and strong leadership team, Nokia Siemens Networks has structurally improved its operational and financial performance," said Nokia president Stephen Elop.

"Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity. Nokia is pleased with these developments and looks forward to continue supporting these efforts to create more shareholder value for the Nokia group."

Nokia and Siemens partnered up in 2007, but the merger has struggled in recent years in the face of increased competition and economic downturn.

The Lumia firm has pledged to retain Siemens' existing management structure and keep its offices in Finland and Germany running.

However, the Siemens name will be phased out from Nokia Siemens Networks when the deal has been completed.