Siemens and Nokia said on Monday they would merge their telecom equipment and network activities to create the sector’s third-biggest company and close the gap on market leader Ericsson. “This joint venture is an important step to strengthen our position in the market sustainably,” said Siemens CEO Klaus Kleinfeld. “This combination creates a leading industry player.” The tie-up between the Finnish and German giants, which follows hot on the heels of the recent merger between Alcatel and Lucent, is marking a further step in the consolidation of the highly fragmented telecom equipment industry in a move that analysts said could spark other deals. “It’s a very good deal for Siemens,” said Dan Bieler, research director for technology analysts Ovum. “It takes a very important, credible step forward to target the internal problems of its communications division whilst retaining a stake in the great market for emerging opportunities in the convergence space.” Siemens has long been looking for a partner for its troubled telecom division, known as Com, after already selling its mobile handset operations to Taiwan consumer electronics group BenQ last year. The telecom business is Siemens’ largest division with annual sales of 13 billion euros ($16.4 billion). But it… Read full this story
- AT&T-Time Warner deal could spur more mergers, scrutiny
- Stock pros: Own these stocks in 2017
- Vodafone completes Verizon Wireless sale for $130B
- Mozilla launching $33 Firefox OS smartphones in India
- Delaware workers at crossroads with layoffs
- Charter seeks size, influence in TWC deal
- AT&T set to test speedy '5G'
- Five notable CEOs who fought the law and lost
- Murdoch's Fox acquires U.K.'s Sky network
Siemens Better Off in Telecom Merger With Nokia have 266 words, post on www.dw.com at June 20, 2006. This is cached page on Movie Breaking News. If you want remove this page, please contact us.