NSN, Moto deal delayed again
Nokia Siemens has finally conceded it won’t be able to close the purchase of Motorola’s infrastructure business during the current quarter, due to lack of clearance from China’s competition authority.
The vendor claims it remains committed to the $1.2 billion (€862 million) acquisition despite declining to name a new completion date after revealing the transaction has entered a third phase of consideration by the anti-monopoly bureau of China’s Ministry of Commerce (MOFCOM).
China is the only country yet to clear the deal, and local news sources report it could take at least three months for the latest MOFCOM examination to be completed.
It is the second delay to closing the acquisition, which NSN originally slated for completion by end-2010, but pushed back due to the China situation.
The deal also faces stiff opposition from Huawei, which has launched a legal bid to block the sale due to concerns IP it supplied to Motorola under previous agreements will now be passed to rival NSN.
Nokia Siemens last month admitted the acquisition would be worthless without the assets, which are essential in maintaining Motorola’s business, after a US court upheld a temporary injunction on the transaction.