Business

Nokia Siemens buys up Motorola networks in $1.2bn deal

Motorola logo at trade fair
Image caption Motorola's deal will make Nokia Siemens the number two network in North America

Nokia Siemens Networks plans to take over some of rival US mobile phone giant Motorola's network operations in a $1.2bn (£784m) deal.

The purchase will give it second place in the huge North American market.

Nokia Siemens Networks is a 50-50 joint venture between Finland's Nokia, the biggest handset maker in the world, and Germany's Siemens.

The tie-up has struggled to make a profit. Its main competitors are Ericsson and China's Huawei.

The Motorola deal will help the venture overtake Huawei.

Nokia Siemens' revenues from North America fell by 9% in the first quarter of this year to 153m euros ($198.5m; £129m).

The company says the deal is "expected to significantly strengthen Nokia Siemens Networks' presence globally, particularly in the United States and Japan".

The deal should be completed - without the need for extra fund-raising - by the end of this year.

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