Nokia Siemens JV to start on April 1

The long-awaited Nokia Siemens Networks merger [1] is finally becoming a reality. The companies announced late yesterday that they would begin their 50:50 joint venture on April 1. The deal was delayed in December while Siemens underwent review of its operations following allegations of corruption [2].

The two manufacturing heavyweights also said they are increasing their contributions to the merger, which allegedly is going to cost more than originally planned. Siemens will contribute £2.4 billion in net assets to Nokia Siemens Networks, £800 million more than originally announced. Meanwhile Nokia will contribute £1.7 billion in net assets, £100 million more than planned.

At the 3GSM World Congress in Barcelona last month the two companies held a press conference discussing the upcoming merger. Executives said that the company's goal is to be No. 1 or No. 2 [3] in telecom infrastructure and to realize $1.5 billion in synergies by 2010.

For more this:
- see this WSJ article [4] (sub. req.)