Finnish mobile handset maker Nokia, on Monday, said it had entered into an agreement to buy Siemens’ entire stake in their telecom equipment joint venture Nokia Siemens Networks for 1.7 billion euro (about $2.2 billion). The 50:50 joint venture was set up in 2007.

The boards of both companies have approved the deal that was expected to be completed during the third quarter, pending approval from regulatory authorities. Post-acquisition, Nokia Siemens Networks (NSN) will become a wholly-owned subsidiary of Nokia, Nokia said in a statement on its website.

“Nokia will continue to consolidate NSN for financial reporting purposes as well as continue to strengthen the company as a more independent entity,” the statement said, adding NSN’s operational headquarters would remain in Espoo, Finland, and Rajeev Suri would continue to be its CEO.

In accordance with this transaction, Siemens name will be phased out from Nokia Siemens Networks’ company name and branding. Nokia and NSN will confirm the new name and brand at the closing of the transaction.

Further, of the 1.7 billion euro purchase price, 1.2 billion euro will be paid in cash at the closing of the transaction.

The balance will be paid in the form of a secured loan from Siemens due one year from closing. Nokia has obtained committed bank financing for the 1.2 billion euro cash portion, it said.

At the end of the first quarter of 2013, Nokia had gross cash of 10.1 billion euro and net cash of 4.5 billion euro.

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