Nokia buys Siemens out of JV

Mobile phone group Nokia is paying €1.7 billion (£1.4bn) to buy out partner Siemens from their network equipment joint venture.

The deal to take full control of profitable Nokia Siemens Networks will help the Finnish giant to diversify away from the smartphone market it once led. It has been struggling in the face of fierce competition from the likes of Apple and Samsung.

Nokia chief executive Stephen Elop said: “With its clear strategic focus and strong leadership team, Nokia Siemens Networks has structurally improved its operational and financial performance.

“Furthermore, Nokia Siemens Networks has established a clear leadership position in LTE [high speed wireless networks], which provides an attractive growth opportunity. Nokia is pleased with these developments and looks forward to continue supporting these efforts to create more shareholder value for the Nokia group.”