Chinese Regulators Delay Nokia Siemens Deal to Buy Motorola Wireless Assets
Dec 29th 2010 7:00PM
Updated Dec 29th 2010 7:50PM
Nokia Siemens Networks said Tuesday that its planned acquisition of most of Motorola's (MOT) wireless-network-equipment business won't happen this year. The joint venture between Germany's Siemens (SI) and Finland's Nokia (NOK) now expects the purchase, delayed by anti-monopoly regulators in China, to be completed sometime in the first quarter of 2011.
"We are continuing to work closely with the authority in China to finalize the clearance process in that country," Rajeev Suri, CEO of Nokia Siemens Networks, said in a statement. "We recognize its efforts in addressing this case as a matter of importance."
Nokia Siemens agreed to buy the Motorola wireless-network assets -- a business unit that employs about 7,500 -- for $1.2 billion back in July. The move would make the venture the No. 3 wireless-networking-equipment company in the U.S.
News of the planned acquisition came after Motorola in February announced plans to break its company into two, spinning its struggling mobile handset and cable set-top box television division into one company while separating its networking equipment division into another company