The joint venture between Nokia and Siemens is coming to a close with the former buying out the latter for €1.7bn. Nokia Siemens Networks (NSN) was founded in 2007 and saw the two European firms partner on providing networking infrastructure to telecoms companies across the globe.
Sanchit Vir Gogia, chief analyst and CEO of Greyhound Research, said that while Nokia was trying to make up for its falling smartphone sales, Siemens had to rethink its strategy rather than be involved with a business that has seen declines in recent quarters.
“Basically, Siemens is hiving off its 50% stake in NSN as part of a strategic repositioning in the market,” he said. “This correlates really well from the announcement in June to shut down its loss-making solar energy unit. Essentially, this tells us this is a strategy that is designed to prune, refocus and drive growth.”
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