The long-awaited Nokia Siemens Networks merger 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.
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 in telecom infrastructure and to realize $1.5 billion in synergies by 2010.
For more this:
- see this WSJ article (sub. req.)