Nokia Corp. and Siemens AG announced they are moving forward on their network equipment joint venture after an investigation into financial irregularities at Siemens’ telecom unit delayed the closing of the deal.
The companies will start sharing the proposed product portfolio plan for Nokia Siemens Networks with employees and customers in early February.
“As we continue to make strong progress in integration planning for Nokia Siemens Networks, it is critical that we are able to maintain the strong support that we have seen so far from customers by providing them with clarity about our future portfolio plans,” said Simon Beresford-Wylie chief of Nokia’s infrastructure business and CEO-designate of Nokia Siemens Networks.
The planned merger is expected to close sometime this quarter. The JV created by that merger, valued at $20 billion, is expected to be the third-largest network equipment company in the world. A financial scandal at Siemens caused Nokia to reconsider the joint venture, but the companies are now moving ahead with the plan.
Nokia Siemens Networks has announced it will cut 10 to 15 percent of its workforce over the next four years due to the joint venture.