Nokia Siemens Deal for Motorola Unit Delayed
Nokia Siemens Networks' US$1.2 billion acquisition of Motorola's cellular networks business has been delayed pending a review from Chinese government regulators.
The deal was originally slated to be completed at the end of this year. But the purchase of the assets is now expected to be finished during the first quarter of 2011, Nokia Siemens said in a statement on Tuesday.
The anti-monopoly bureau of China's Ministry of Commerce is still reviewing the deal, the network vendor said.
"We are continuing to work closely with the authority in China to finalize the clearance process in that country," said Rajeev Suri, CEO of Nokia Siemens, in a statement. "We recognize its efforts in addressing this case as a matter of importance."
Nokia Siemens announced it would purchase the Motorola unit in July for US$1.2 billion, saying the deal would "enhance profitability and cash-flow". The acquisition would make Nokia Siemens the number three wireless network vendor in the U.S. and also make it the largest foreign supplier of cellular infrastructure equipment in Japan.
The deal also gives Nokia Siemens established relationships with more than 50 telecom operators and reinforces its ties with customers such as Verizon Wireless, Vodafone and China Mobile. About 7,500 employees from the Motorola unit will join Nokia Siemens.
Nokia Siemens said that it obtained all other regulatory clearances to complete the purchase.