Nokia said to arrange NSN buyout

Nokia has reportedly agreed to buy out Siemens' 50% stake in NSN in a deal worth less than €2 billion ($2.6 billion).

 

The companies have arranged a deal and Nokia could officially announce it as early as later today, three separate sources told Bloomberg. 

 

If the rumor is true, it would put an end to months of speculation about the future of NSN. Siemens CFO Joe Kaeser has publicly stated that the company plans to exit the JV this year.

 

Siemens has this month reportedly been approaching private equity groups with an offer to sell, while Nokia has been trying to put together a deal for the stake.

 

Nokia plans to fund the purchase with a bridge loan, according to one of the sources.

 

While NSN has been a financial drain‎ for its owners for some time, according to Nokia turnaround efforts and cutbacks have enabled the joint venture to start operating profitably.