Nokia Siemens to Aim U.S. and Japan With Deal
Nokia Siemens Networks earlier revealed a deal to pay $1.2 billion for the greater part of U.S.-based Motorola Inc.’s network equipment business, moving to achieve a stronger grip in the significant North American and Japanese markets.
The deal will be able to give economies of scale and synergies in areas such as mobile broadband, Chief Executive Rajeev Suri said in an interview Monday.
Nokia Siemens, a combined business between Finland’s Nokia Corp. and Germany’s Siemens AG, said it hopes the transaction to strengthen its business relationships with a specific of telecom operators including China Mobile Ltd. Sprint Nextel Corp. and Vodafone Group PLC. It is imprtant to seek stronger bonds as it finds itself between market leader Telefon AB L.M. Ericsson and rising upstart Huawei Technologies Co.
"This deal is about customers," Mr. Suri said. "I expect to gain an incumbent position with many new customers."
As an outcome of the deal, Nokia Siemens aspires to become the largest foreign wireless gear vendor in Japan, the third-largest in the U.S., and to support its No. 2 rank in the global infrastructure segment. The deal is expected to be done by the end of 2010.