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DOW JONES NEWSWIRES
Telecom equipment vendor Nokia Siemens Networks said its
acquisition of most of Motorola Inc.'s (MOT) network equipment
business will close later than expected, as a Chinese regulator
hasn't approved the deal.
The companies, which announced the deal in July, had originally
expected it to close by the year's end. But the antitrust arm of
China's Ministry of Commerce is continuing its review of the
transaction, Nokia Siemens said Tuesday. All other necessary
clearances have been obtained, including approvals from the U.S.,
Japan and the European Union.
It now expects the deal to close in the first quarter.
"We are continuing to work closely with the authority in China
to finalize the clearance process in that country," Chief Executive
Rajeev Suri said. "We recognize its efforts in addressing this case
as a matter of importance."
The acquisition would boost the position of Nokia Siemens, a
joint venture between Finland's Nokia Corp. (NOK, NOK1V.HE) and
Germany's Siemens AG (SI, SIE.XE), in markets like the U.S. and
Japan and gain it access to new customers. Executives also expected
it to provide economies of scale and synergies in areas such as
mobile broadband.
Meanwhile, Motorola is narrowing its operations as it plans to
split itself into two companies early next year, separating its
enterprise mobility and public safety units from its mobile devices
and television set-top box businesses.
About 7,500 employees are expected to transfer to Nokia Siemens
from Motorola after the deal closes.
Nokia Corp.'s American Depositary Shares were off 4 cents at
$10.18 in recent trading, while Siemens was down 0.6% at $123.70.
Motorla was flat at $8.99.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com