Nokia reportedly set to buy Siemens' stake in Nokia Siemens Networks joint venture [UPDATED]Alex Wagner - Deputy Managing Editor, News Desk
Nokia's got its "Zoom. Reinvented." event scheduled for July 11, and while the company hasn't come out and said exactly what it's got planned for the shindig, many expect that we'll finally see the official introduction of the Nokia EOS and its 41-megapixel camera there. It looks like Nokia that may not be the only big news coming from the Finnish firm, though, as a new report claims that Nokia is planning to buy Siemens' stake in the Nokia Siemens Networks joint venture.
Sources speaking to Bloomberg say that Nokia has agreed to buy out Siemens' stake in Nokia Siemens Networks, a telecommunications equipment company. There's no word yet on exactly how much Nokia will be spending for Siemens' portion of the joint venture, but one tipster alleges that the total will be under 2 billion euros ($2.6 billion USD) in the transaction. Neither Nokia nor Siemens has commented on the rumor.
It's said that Siemens began holding talks regarding a sale of its portion of Nokia Siemens Networks earlier this year. Considering that Nokia's already involved in the company, it's no surprise to hear that Elop and Co. would be interesting in buying Siemens' stake and taking NSN for itself, especially after joint venture has experienced increased earnings as of late thanks to various cost-cutting measures. While still a rumor at this point, the sources of today's report claim that Nokia could make an announcement regarding the deal as soon as tomorrow, so it may not be long before more details on this matter emerge. Stay tuned.
UPDATE: Nokia has issued a press release confirming that it has struck a deal to acquire Siemens' 50 percent stake in the Nokia Siemens Networks joint venture. Nokia has agreed to pay €1.7 billion ($2.21 billion USD). Nokia will pay €1.2 billion in cash at the deal's closing, with the remaining €0.5 billion being paid in the form of a secured loan from Siemens. The transaction is expected to close in Q3 2013.