Nokia stumps up $1.1bn to buy Siemens stake

Nokia looks to be repositioning itself as a 4G network operator after buying out partner Siemens AG in a network equipment joint venture.

The Finnish phone-maker is paying $1.1 billion (£720 million) for full control of the profitable Nokia Siemens Networks (NSN), which operates fourth-generation Long Term Evolution networks used by smartphones such as Nokia’s new Lumia 925.

Nokia made a loss of $196 million in the first quarter of the year while NSN posted a $1.2 billion profit in the first three months of the year.

Nokia’s chief executive Stephen Elop said: “Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity.”

NSN will operate as an independent wholly-owned subsidiary of Nokia.