Nokia Siemens Networks now targets acquisition of Motorola's public carrier wireless network infrastructure assets in first quarter of 2011

Pending regulatory approval from the authority in China
Antitrust clearance received from US, European Union, Brazil, Japan, Russia, South Africa, Taiwan and Turkey

 

Nokia Siemens Networks today announced that it now expects to complete its acquisition of the majority of Motorola's public carrier wireless network infrastructure assets in the first quarter of 2011. The company had expected, at the time the transaction was originally announced on July 19, 2010, to complete closing activities by the end of 2010 but the transaction has not yet received regulatory approval from the Anti-Monopoly Bureau of the Ministry of Commerce of China, which is continuing its review process. All other necessary regulatory clearances have been obtained.

 "This delay is disappointing, but we're looking forward to completing the acquisition early in the new year," said Rajeev Suri, chief executive officer of Nokia Siemens Networks. "We are continuing to work closely with the authority in China to finalize the clearance process in that country. We recognize its efforts in addressing this case as a matter of importance."

 Approximately 7,500 employees are expected to transfer to Nokia Siemens Networks from Motorola's public carrier wireless network infrastructure business when the transaction closes, including large research and development sites in the United States, China and India.

Can Google Be Motorola's Rescuer?

Google has got the software mavericks; they are on the look-out of good hardware engineers. For industry leading devices there has to be a consolidation of hardware and software expertise.

After a few Nexus One limitations Google must have jolted out of the reverie that even if they dictate all the specifications to their ‘outsourced’ HTC, success rate can’t be cent percent. If this worry was only one of many agenda in the giant’s meeting lists for sometime back, now it has become news for everyone around the world.

Ever since speculations of Motorola’s disintegration found hints of authenticity, the deal with Nokia Siemens Networks about the sale of network assets on the cards, their handset division comes out as a major lucrative segment for shoppers. And so, heads at Google turned to neighborhood- Motorola.

Motorola has been facing some serious pitfalls from quite sometime. Besides the cut throat competition given by resurgent Finnish Nokia, the US based firm has more concerns than only the smartphone sales. So one way to sail across this stormy season of financial hassles is to put its handset division in the showcase.

The question is, is Google the right buyer for Motorola? The bank accounts say yes! Google has reserves of USD 21billion to Motorola’s handset business which costs around USD 2billion. Google does have their vested interests in the deal, their concern, however, would be to poise the new ventures with its core competence.