SA's Competition Tribunal has green-lighted the merger between Siemens' and Nokia's mobile and fixed-line network equipment businesses.
The tribunal yesterday passed an unqualified yes on the proposed merger. The deal aims to "create a global leader with strong positions in important growth segments of fixed and mobile network infrastructure and services", said the companies in a joint statement.
Siemens and Nokia will now be able to go ahead with the joint venture firm, Nokia Siemens Network, that will incorporate their mobile and fixed-line network. The companies will have equal control and interest in the joint venture.
The new global company is set to come into effect on 1 January and, based on 2005 figures, is expected to see at least 16 billion euro in sales.
Based on current market share data, it will be the second largest company in mobile infrastructure, second in services, third in fixed infrastructure, and the third largest in the overall telecommunications infrastructure market.
In June, the companies announced their intention to merge, which is expected to save the new entity 1.5 billion euro a year by 2010.
Related stories:
Tribunal to hear Nokia, Siemens merger
Nokia, Siemens merger to deflect China factor
Nokia, Siemens merge network units
Share