Nokia buys Siemens out of joint venture for €1.7bn

Nokia has bought Siemens out of the telecome equipment joint venture for €1.7bn, ending their six-year partnership.

The buyout will hopefully bring some stability to Nokia, whose struggling mobile phone business has prompted rumours of a possible sale. It will also allow Siemens to exit a joint venture that it has been looking to escape for a while, in order to focus on energy equipment, healthcare and rail.

Nokia will pay Siemens €1.2bn cash for Siemens’s 50 per cent stake, with the remaining €500,000 being paid through a secured loan from Siemens due one year after closing.