Nokia becomes the sole owner of the Nokia Siemens Networks

Nokia becomes the sole owner of the Nokia Siemens Networks

       According to Bloomberg, Nokia has agreed to acquire the German Siemens its stake in Nokia Siemens Networks. Citing anonymous sources close to the company, Bloomberg reports that Nokia and Siemens are to formally announce the deal today, although it is still subject of negotiations between the parties, nothing was reported. known that Nokia will pay a 50% share of Siemens slightly less than $ 2 billion, or $ 2.6 billion, and Nokia itself does not have the money, so the company will use the complex structure of loans to raise money.

       Sources say that although the middle of the year between Nokia and Siemens have a moratorium on the sale of their shares, the German company decided to sell a few years ago. By selling a stake in NSN, Siemens intends to focus on the production of equipment for power, rail and public health. For Nokia, which did not take off in the smartphone market, the transaction is a chance as well as an additional burden.

        Nokia gets full control of NSN, which allows the company to more broadly representative of the telecom market and actively negotiate with the operators, on the other hand the company is now experiencing a shortage of hard cash and additional spending $ 2 billion - a dangerous maneuver. known that Siemens previously led negotiating the sale of its stake in NSN with a number of management companies and investment funds, but Nokia has always been seen as a priority customer.

       Also, there is evidence that even in 2011, Nokia and Siemens, faced with financial and organizational problems in the NSN, held talks on raising their third investor in the joint venture, but have not been able to agree on the transaction. According to estimates Bloomberg, now the net cash balance Nokia is 4.5 billion euros, 100 million euros more than in the previous quarter. All three major rating agencies hold rating on Nokia debt to junk level. Updated on 9:05 MSK: press service of Nokia and Siemens officially confirmed the sale of a 50% share of Siemens, Nokia. The transaction value was 1.7 billion euros.