Nokia Siemens Networks’ acquisition of Motorola Inc.’s network infrastructure business has been pushed to the first quarter of 2011 because the deal still needs regulatory approval in China.
The $1.2 billion transaction between Schaumburg-based Motorola and Nokia Siemens Networks was announced in July and expected to close by the end of 2010. However, the Chinese Ministry of Commerce’s Anti-Monopoly Bureau has yet to approve it. Regulators in the U.S., European Union, Brazil, Japan, Russia, South Africa, Taiwan and Turkey have given the green light.
“This delay is disappointing, but we’re looking forward to completing the acquisition early in the new year,” Nokia Siemens Networks Chief Executive Rajeev Suri said in a statement, adding that the company is “continuing to work closely” with the Chinese regulators.
After the deal closes, about 7,500 Motorola employees are expected to join Nokia Siemens Networks.
Motorola is also preparing to split into two publicly traded companies on Jan. 4. Motorola Solutions will comprise communications equipment and software for government and industrial clients, while Motorola Mobility will encompass mobile devices and TV set-top boxes.
wawong@tribune.com
