Nokia, Siemens joint venture to go ahead

Nokia, Siemens joint venture to go ahead

Nokia and Siemens plan to launch their network equipment joint venture in April.

Nokia and Siemens will launch their network products joint venture on April 1, after a delay caused by a corruption investigation at Siemens.

The companies instigated a compliance review of Siemens in December after European authorities began investigating bribery charges at the German technology company. The former head of Siemens' telecommunications equipment group, the division that will comprise half of the joint-venture company, was later arrested.

The companies announced in June that they'd merge their telecommunications equipment groups and initially planned to launch the new company by the end of 2006.

As a result of the review, the companies decided that the joint venture's compliance processes will be based on Nokia's systems and practices. Processes will include training programs, centralized reporting systems and approval processes for government business and for working with consultants in sales.

The companies also said on Wednesday that they'd increase their net asset contributions to the joint venture. Siemens will contribute Euro 2.4 billion (US$3.2 billion) in assets and Nokia will contribute Euro 1.7 billion. The companies will share an equal stake in the joint venture.

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