The Chinese regulator has delayed the acquisition of Motorola's telecommunications network equipment business by Nokia Siemens Networks' although all the other country regulators have approved the $1.2-billion deal.
The equal joint venture between Finland's Nokia Corporation and Berlin-based Siemens AG, Nokia Siemens Networks had proposed in July 2010 to acquire Motorola's telecommunications network equipment business for $1.2 billion in a deal that will make Nokia Siemens the second-largest mobile gear maker ahead of China's Huawei. (See: Nokia Siemens snaps up Motorola's gear business for $1.2 billion)
The acquisition would strengthen Nokia Siemens presence globally, particularly in the US and Japan to enable it to become the third-largest wireless infrastructure vendor in the US, the largest in Japan and be in direct competition with Huawei.
Although regulators of countries including the US, Japan and the European Union have approved the deal, the Chinese regulator The Anti-Monopoly Bureau of the Ministry of Commerce of China is yet to give its nod to the six-month old deal.
"This delay is disappointing, but we're looking forward to completing the acquisition early in the new year," said Nokia Siemens Networks CEO Rajeev Suri in a statement yesterday.
Nokia spokesman Ben Roome said there was no regulatory problem with the Chinese regulator, but it is taking a longer time than expected.