Finnish-headquartered cellphone maker Nokia and German electronics giant Siemens will combine their mobile network operations to create a joint €16 billion ($20.14bn; £10.92bn) venture.
Named Nokia Siemens Networks, the new entity will comprise the network business group of the former and the latter's carrier-related operations. It will be baed in Finland and is another step along the road to consolidation among telecoms businesses to withstand increasing competition from Asia.
Comments Nokia ceo Olli-Pekka Kallasuvo: "We believe the partnership with Siemens is the most effective way to build scale and broad product portfolio necessary to compete globally and create value for shareholders."
Klaus Kleinfeld, ceo of the Munich-headquartered Siemens, concurs: "This combination creates a leading player with immediate strength, excellent potential for growth and well-positioned to improve future profitability."
The new company will be headed by the chief of Nokia's network operations, Simon Beresford-Wylie. Siemens' Peter Schoenhofer will be finance boss.
The venture will inevitably lead to job losses among the 60,000 workforce.
Data sourced from BBC Online; additional content by WARC staff