Nokia and Siemens intend to merge the Networks Business Group of Nokia and the carrier-related operations of Siemens into a new company, to be called Nokia Siemens Networks.

The 50-50 joint venture will create a global leader with strong positions in important growth segments of fixed and mobile network infrastructure and services.

The new company is said to have a world-class fixed-mobile convergence capability, a complementary global base of customers, a deep presence in both developed and emerging markets, and one of the industry's largest and most experienced service organization, according to Siemens in a statement issued to the press today.

The transaction closing is expected to take place before 1 January 2007 and is subject to customary regulatory approvals, the completion of standard closing conditions, and the agreement of a number of implementation steps.

Simon Beresford-Wylie, currently Executive Vice President and General Manager of Networks at Nokia, will assume the position of CEO of the new company. Peter Schoenhofer. currently Member of the Executive Board of Siemens AG Austria will assume the position of CFO

Based on the 2005 calendar year, the combined company had EUR 15.8 billion in pro forma annual revenues and is expected to start operations with 60,000 employees.

Nokia Siemens Networks will have its operational headquarters in the metropolitan area of Helsinki, Finland, and will have a strong regional headquarters in Munich, Germany, where three of the future five divisions of the new company will be based.

The remaining Wireless Modules business will be integrated into the Siemens group Automation and Drives as of 1 October 2006.