2nd UPDATE: China Approves Nokia Siemens' Motorola Assets Deal
21 Aprile 2011 - 3:17PM
Dow Jones News
Chinese regulators have approved Nokia Siemens Networks' planned
acquisition of most of Motorola Solutions Inc.'s (MSI)
network-equipment assets, the two companies said Thursday, clearing
the path for the deal to close next week.
Nokia Siemens Networks, the joint venture between Finland's
Nokia Corp. (NOK) and Germany's Siemens AG (SI), agreed to buy the
bulk of Motorola's network-equipment business for $1.2 billion in
July last year, but the deal was awaiting approval from China's
Ministry of Commerce, which has the authority to review foreign
mergers on antitrust grounds.
The sale is a key component of Motorola's restructuring,
generating much-needed cash after the company split into two parts:
Motorola Solutions, which sells public safety gear; and Motorola
Mobility Holdings Inc., which sells mobile phones and set-top
boxes.
The approval comes after a settlement between Chinese telecom
equipment vendor Huawei Technologies Co. and Motorola Solutions
last week removed a key obstacle to the deal's completion.
Privately held Huawei took legal action in January to delay the
Nokia Siemens deal, saying that Motorola had sold Huawei-branded
gear in the past, and that its intellectual property could
therefore be transferred to rival Nokia Siemens through the planned
acquisition. Huawei dropped its objections as part of a sweeping
settlement between the two companies last week to drop suits filed
against each other over intellectual property issues.
Under last week's settlement, Huawei agreed to drop its
objections to the Nokia deal in exchange for a one-time fee for use
of its technology. Huawei withdrew an objection over the Motorola
assets sale that it had filed with the Ministry of Commerce.
Motorola agreed to drop its claims that Huawei had stolen its
intellectual property via an elaborate scheme involving former
Motorola employees and a front company.
The deal has now received all the regulatory approvals that it
requires and the companies expect to close the deal on April 29,
Nokia Siemens spokeswoman Riita Mard said Thursday. Motorola
Solutions spokesman Nick Sweers confirmed the approval and expected
closing date.
China's Ministry of Commerce didn't reply to a request for
comment.
-By Owen Fletcher and Aaron Back, Dow Jones Newswires; (8610)
8400-7702; owen.fletcher@dowjones.com
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