Russia delays clearing Nokia-Siemens venture

Russian authorities are seeking more details from Siemens AG and Nokia Oyj about their joint telecoms equipment venture, saying it could get a dominant market position in the Russian market.

A Siemens spokesman said any delay resulting from the Russian request would not threaten the venture’s planned launch.

"This is not an unusual proceedure and it would not influence the deal on global basis," said a Siemens spokesman.

Mobile phone maker Nokia and German industrial conglomerate Siemens said last June they would merge their telecoms network equipment businesses. Around one in five mobile phone calls globally is made via a Siemens or Nokia network.

"According to preliminary estimates … (the venture) will increase its share on Russia’s mobile network market and will be able to dominate it under certain conditions," Russia’s Federal Antimonopoly Service said in a statement.

"The Antimonopoly service of the Russian Federation has decided to prolong the time for consideration of the application due to the necessity to get more information," it said.

More details on the possible timetable were not immediately available. Nokia and Siemens have won permission from key authorities for the deal in the European Union and the United States, but the deal which will create one of the largest players in the telecoms equipment industry has to be approved in numerous countries.

"Nearly all antitrust authorities worldwide have given their approval," the Siemens spokesman said, while Barry French, spokesman for Nokia Networks, said: "We continue to work with the authorities in Russia and will, of course, respond to any additional questions they may have".

Source: Reuters

It won’t be long, and like the article states: This won’t affect Nokia’s global operations.