Nokia said to arrange NSN buyout
Nokia is set to buy Siemens out of the pair's Nokia Siemens Networks joint venture for €1.7 billion.
The Finnish vendor revealed the deal in an announcement early this morning, noting NSN’s strong position in LTE is the main benefit for the Finnish firm. Siemens, meanwhile, says the sale allows it to focus on its core markets.
Nokia's announcement ends months of speculation about the future of NSN.
Siemens has this month reportedly been approaching private equity groups with an offer to sell, while Nokia has been trying to put together a deal for the stake.
Nokia plans to fund the purchase with a bridge loan, according to one of the sources.
While NSN has been a financial drain for its owners for some time, according to Nokia turnaround efforts and cutbacks have enabled the joint venture to start operating profitably.