Shares of Nokia (NOK) surged more than 3% in Monday morning trading after the company announced that it would buyout Siemens‘ (SI) stake in their telecommunications partnership.
Nokia currently owns 50% of Nokia Siemens Networks (NSN). It will acquire the remaining stake in NSN from Siemens for 1.2 billion euros in cash and a 500 million euro loan payable to Siemens a year after the acquisition is finalized. The deal that is expected to close during the third quarter of 2013, the New York Times notes.
Siemens has previously expressed interest in disposing of assets outside of its core industrial and energy segments,
A Nokia executive said that the acquisition could be a first step toward selling all of NSN, which employs 60,000 workers around the world.
Formed in 2007, NSN holds about 20% of the Long Term Evolution (LTE) wireless data networking equipment market.
Nokia shares have been battered in recent quarters due to rising competition among smartphone makers.
Shares of Siemens rose more than 2% in Monday morning trading.