India gives the Nokia Siemens merger the OK

At present, Nokia and Siemens are two different entities. They have individual approval for trading and manufacturing in India. While Nokia is strong on mobile segment, Siemens has a strong presence in fixed line telephony business.

The merger will mean that the two companies can now jointly bid for the $5-billion tender floated by state-owned BSNL for about 45 million cellular lines. As of now, both the companies have put in different bids.

Nokia has two businesses — handset and network. Now, the network business will have Siemens as well and to be a merged entity it will have to hive off the network division.

Finnish telecom equipment major announced in June it was merging its mobile networks division with German-based technology company Siemens. The new entity is called Nokia Siemens Networks.

The 50:50 joint venture will consist of Nokia’s Networks Business Group and Siemens’ carrier-related operations for fixed and mobile networks.

Globally, the joint venture will be the second largest company in mobile infrastructure, second in services, third in fixed infrastructure, and the third largest in the overall telecommunications infrastructure market.

Source: The Hindu

Good luck with the merger, I’m sure you won’t have any problems as you’re already dominating India.

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