Nokia And China Huaxin To Create JV Combining Nokia China And Shanghai Bell

(RTTNews) - Nokia and China Huaxin Post & Telecommunication Economy Development Center have signed a MoU, confirming their intention to combine Nokia's telecommunications infrastructure businesses in China, or Nokia China, and Alcatel-Lucent Shanghai Bell, or ASB, into a new joint venture.

Nokia China provides telecom infrastructure software, hardware and services to leading mobile operators in China. Alcatel-Lucent Shanghai Bell provides end-to-end telecommunication solutions and high-quality services to customers in China and worldwide. China Huaxin is an industrial investment company.

Nokia expects to hold 50% plus one share in the new joint venture, with China Huaxin holding the remaining shares. Fair value compensation would be received for the contribution of relevant assets to the joint venture. Until the closing of the proposed combination between Nokia and Alcatel-Lucent, Nokia China and ASB will continue to operate as two independent companies.

Rajeev Suri, CEO of Nokia, said: "The agreement demonstrates Nokia's deep commitment to China. Together with China Huaxin, Nokia will be in an excellent position to support strategic initiatives of the Chinese government such as "Internet Plus" and provide a strong link between Europe and China."