Nokia to buy Siemens’ stake
Nokia has agreed to buy the Siemens’s half of a telecommunications equipment joint venture for about 1.7 billion euros ($2.2 billion) as Nokia continues to struggle with challenges in its core business.
Once the reigning handset maker, Nokia has failed to maintain market share, particularly for smartphones, in the face of competition from Apple’s iPhone and a tide of phones from Samsung and others that run on Google’s Android operating system.
By acquiring the 50 percent stake in Nokia Siemens Networks (NSN) that it does not already own, Nokia has secured ownership of a profitable business to prop up its balance sheet, as it continues efforts to turnaround its cellphone operations.
Under the terms of the deal, Nokia would pay 1.2 billion euros to Siemens for the joint venture, and 500 million euros in the form of a secured loan from the German company that must be repaid one year after the transaction is completed.