UPDATE: Nokia Buys Siemens Stake in Joint Unit for US$2.2 Billion

July 1
2:48 AM 2013

Finland Based Nokia Ovj bought Siemens AG's stake in the telecommunications-equipment venture. The deal was priced Eur1.7 billion that marked the end of their six year partnership. Nokia paid Eur1.2 billion for the 50% stake that Siemens owned in the Nokia Siemens Networks. The remaining balance of the deal is to be paid through a secured loan that will due next year. This was according to a joint statement released by the company today. Nokia Siemens will keep its headquarters in Espoo, Finland with Rajeev Suri continuing to lead the equipment maker.

Nokia sought to make a comeback in the smartphone industry. The deal gave the company full control over a company with improving earnings since its return to profit last year. Siemens wanted to exit the wireless industry for several years to be able to drive its focus on energy equipment, rail and healthcare according to an early report from Bloomberg yesterday.

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