July 1, 2013 Nokia officially announced the purchase of Nokia Siemens Networks company in which Siemens holds 50% of the shares, the total cost of $ 2.2 billion buyback, Nokia Siemens Networks will become a wholly owned subsidiary of Nokia.
Nokia official said the transaction will be completed the third quarter of 2013, the current need regulatory instructions. Nokia Siemens Networks was originally a joint venture between Nokia and Siemens, each having a 50% stake, Nokia spent $ 2.2 billion acquisition of Siemens holds 50% Nokia Siemens Networks shares, of which $ 1.56 billion will be directly paid in cash, and the rest through loan payments.
Nokia Siemens Networks since 2007 since the establishment of the joint venture's operating performance has been good, until it became profitable in 2012, thanks to effective cost control, Nokia Siemens Networks has improved profits drop, 2012 Nokia Siemens Networks completed successfully the $ 1.3 billion cost reduction target.
As Nokia Siemens Networks performance has not been possible to make satisfactory Siemens, Siemens has been looking for opportunities to sell the company's shares, the introduction of an increasingly competitive communications industry, the company will focus on the power turbine and high-speed rail business. For Nokia, the completion of the repurchase has been profitable for Nokia Siemens Networks helps companies enhance the performance, Nokia CEO Stephen Elop said that, Nokia Siemens Networks has a clear strategic planning and excellent management team, operations and financial condition have been a significant improvement, especially in the field of LTE obvious advantages, with good market prospects.
As Nokia Siemens Networks performance has not been possible to make satisfactory Siemens, Siemens has been looking for opportunities to sell the company's shares, the introduction of an increasingly competitive communications industry, the company will focus on the power turbine and high-speed rail business. For Nokia, the completion of the repurchase has been profitable for Nokia Siemens Networks helps companies enhance the performance, Nokia CEO Stephen Elop said that, Nokia Siemens Networks has a clear strategic planning and excellent management team, operations and financial condition have been a significant improvement, especially in the field of LTE obvious advantages, with good market prospects.
