European Commission approves the formation of Nokia Siemens Networks

The European Commission today announced that it has approved the
planned transaction to merge the Networks Business Group of Nokia (NYSE: NOK) and
the carrier-related operations of Siemens into a new company, to be
called Nokia Siemens Networks. According to the Commission’s
assessment, the transaction would not restrict effective competition in
the relevant markets of mobile and fixed telecom networks and services.

CEO designate of Nokia Siemens Networks, Simon Beresford-Wylie,
welcomed the decision, saying it was an important step towards full
regulatory approval and good news for customers. "We believe this
decision by the European Commission is a key milestone in obtaining all
the relevant approvals for the transaction. While there are
notifications still pending in some countries, based on this decision
we are optimistic that the merger can be closed within the timetable
anticipated by both parties."

Beresford-Wylie also reiterated the benefits and strengths of the new
company, saying: "Nokia Siemens Networks will have the scale and broad
product portfolio necessary to compete globally and create value for
shareholders. We will be well-positioned to help our customers meet the
challenges of lowering costs, growing revenue, and seizing the
opportunities presented by converging technology."

On June 19, 2006, Nokia and Siemens announced plans to combine Nokia’s
Networks business group and Siemens’ carrier-related operations for
fixed and mobile networks to form a new company called Nokia Siemens
Networks. The new company, with 2005 calendar year pro forma revenues
of EUR 15.8 billion, is uniquely positioned to deliver compelling
customer benefits with a comprehensive portfolio of products and
solutions for the converging telecommunications market. Nokia and
Siemens continue to expect that the operations of the new company will
start in January 2007.

Source: The 3G Portal

So how does this affect us in the USA? Do we really want Nokia focusing on services now instead of phones? I need to get more information before I draw my conclusions but my stance on company mergers is that they either make a good product better, or take two good products and turn them into one horrible item that no consumer with an IQ over that of a goat’s foot would want.