China Approves Nokia Siemens Networks acquisition of Motorola Solution Inc.

By on Apr 23, 2011 in Asia, Business Comments
 

Image Credit: www.nokiasiemensnetworks.com

Beijing – Wall Street Journal reported that the Chinese regulators have approved Nokia Siemens Networks acquisition of Motorola Solutions Inc. equipment assets. Nokia Siemens Networks is a joint venture between Finland’s Nokia Corp. and Germany’s Siemens.

Last July 2010, Nokia Siemens Networks, agreed to buy majority of Motorola’s network equipment business for $1.2 billion but approval from China’s Ministry of Commerce, which has the authority to review foreign mergers on anti-trust grounds, has not been provided.

Chinese regulators gave “unconditional approval” clearing last year regulatory obstacles last Thursday.

The Chinese Ministry approval follows the settlement of a lawsuit made in U.S. Federal court against Motorola by a Chinese network equipment maker, Huawei Technologies, arguing that Motorola has sold Huawei-branded gear in the past and that its intellectual property could therefore be transferred to rival Nokia Siemens through the planned acquisition.

Motorola solutions agreed to pay Huawei an undisclosed fee to transfer its contract to Nokia Siemens. The deal allows Nokia Siemens to use confidential information to service networks that Motorola deployed using Huawei’s technology.

The deal has now received all the regulatory approvals that it requires, Nokia Siemens spokeswoman Riita Mard said, adding that the company aims to close the deal by April 29.



Spread The News!



Tags: , , , , , , , ,

Advertisement

Related News



What's On Your Mind?




Pinterest
Email