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Nokia and Siemens have entered into a definitive agreement, according to which Nokia acquires Siemens’ entire 50 per cent stake in their joint venture, Nokia Siemens Networks. The purchase price for Siemens’ stake is roughly $2.2 billion, and the transaction is expected to close during the third calendar quarter of 2013.

The acquisition has been approved by the board of directors of Nokia as well as the managing and supervisory boards of Siemens, and is subject to customary regulatory approval processes.

Upon closing of the planned acquisition, Nokia Siemens Networks will become a wholly owned subsidiary of Nokia.

Nokia Siemens Networks was established on April 1, 2007, as a joint venture combining Nokia’s Networks Business Group and Siemens’ carrier-related operations for fixed and mobile networks.

Nokia plans to retain the existing management and governance structure at Nokia Siemens Networks, with Rajeev Suri continuing as CEO and Jesper Ovesen continuing as executive chairman of the Nokia Siemens Networks board of directors, which will adjust to the changing ownership structure.

Nokia Siemens Networks’ operational headquarters will remain in Espoo, Finland, and the company will continue to have a strong regional presence in Germany, including its major hub in Munich.

Nokia says it supports the current management direction of the joint venture, including the already in-progress Nokia Siemens Networks restructuring plan.

In accordance with this transaction, the Siemens name will be phased out from Nokia Siemens Networks’ company name and branding.

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