The European Commission approved the planned transaction to merge the Networks Business Group of Nokia and the carrier-related operations of Siemens into a new company -- Nokia Siemens Networks.
The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Specifically, the EC ruled that the main competitive impact of the proposed merger would be in the mobile network equipment sector, since Nokia has few activities in fixed-line telecommunications. Despite the considerable market share the merged entity would have in the mobile network equipment sector, the market structure would remain competitive because a sufficient number of credible competitors would remain in the market, notably Ericsson and Alcatel-Lucent.
"We believe this decision by the European Commission is a key milestone in obtaining all the relevant approvals for the transaction. While there are notifications still pending in some countries, based on this decision we are optimistic that the merger can be closed within the timetable anticipated by both parties," said Simon Beresford-Wylie, CEO designate of Nokia Siemens Networks.
, is uniquely positioned to deliver compelling customer benefits with a comprehensive portfolio of products and solutions for the converging telecommunications market. Nokia and Siemens continue to expect that the operations of the new company will start in January 2007.
http://www.nokia.comhttp://www.siemens.com
- On June 19, 2006, Nokia and Siemens announced plans to combine Nokia's Networks business group and Siemens' carrier-related operations for fixed and mobile networks to form a new company called Nokia Siemens Networks. The new company had 2005 calendar year pro forma revenues of EUR 15.8 billion.
