Nokia buys network operations from Siemens

AP FILE PHOTO

HELSINKI – Nokia said it would buy Siemens’ half of their joint network operations in a €1.7 billion ($2.22 billion) deal.

The Finnish company said that the transaction, to be completed during the third quarter this year, means that the joint venture Nokia Siemens Networks would become a wholly owned subsidiary of Nokia Corp.

Nokia CEO Stephen Elop said Monday that the network operations had improved its financial performance, and progress in high-speed data provides “an attractive growth opportunity.”

Nokia, once the dominant cellphone maker, is struggling in the smartphone market against Samsung, Apple’s iPhone and handsets that use Google’s Android software as well as against Asian manufacturers making cheaper handsets.