Nokia Networks to buy part of Panasonic's wireless network business
Espoo, Finland - Nokia Networks today announced that it has entered into a memorandum of understanding to acquire part of the wireless networks business of Panasonic System Networks Company Limited. The agreement covers Panasonic's mobile phone (LTE/3G) wireless base station system business for mobile operators and related wireless equipment system business.
The two parties plan to conclude the agreement by the end of September 2014, with expected closure scheduled on January 1, 2015, subject to customary closing conditions, including regulatory approvals. Under the terms of the agreement, fixed assets and business contracts with Panasonic's customers are being transferred to Nokia Networks in Japan, including Panasonic employees involved in the business.
"Japan is a key market for us, and this agreement is a major milestone in forging closer ties in Japan," said Ashish Chowdhary, Executive Vice President, AMEA, Nokia Networks. "The acquisition of part of Panasonic's wireless network business would further strengthen our mobile broadband portfolio and add significant value for Japanese operators."
Through this acquisition, Nokia Networks aims to reinforce and further improve efficiency and quality control for product development and R&D, as well as strengthen its market share for base station systems and related wireless equipment in Japan. In addition, Nokia Networks plans to leverage its extensive global experience and technical leadership in mobile broadband to grow its business in the acquired domestic carrier segment globally.
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Panasonic Corporation is a worldwide leader in the development and engineering of electronic technologies and solutions for customers in residential, non-residential, mobility and personal applications. Since its founding in 1918, the company has expanded globally and now operates over 500 consolidated companies worldwide, recording consolidated net sales of 7.74 trillion yen for the year ended March 31, 2014. Committed to pursuing new value through innovation across divisional lines, the company strives to create a better life and a better world for its customers. For more information about Panasonic, please visit the company's website at http://panasonic.net/.
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