Nokia is contemplating buying a part of Panasonic’s wireless/network business in order to increase its operations in Japan. This move by the Finnish firm will also strengthen its mobile broadband portfolio for an undisclosed amount.
According to a statement released by the Finnish firm yesterday, Nokia Networks has entered into a memorandum of understanding to acquire part of the wireless network business of Panasonic System Network Company Ltd.
The statements also makes it clear that the memorandum includes Panasonic’s mobile phone wireless base station system business for mobile operators and related wireless equipment system business.
Nokia and Panasonic have agreed on concluding the agreement by September 2014. According to the customary closing conditions and regulatory approvals, the closure can be expected to be scheduled around 1st January next year.
The deal further includes transferring of business contracts and fixed assets from Panasonic’s customers to the Nokia Networks. The transferring also includes transferring of Panasonic employees who are a part of the business.
According to Ashish Chowdhary, Executive Vice President, Nokia Networks, Nokia considers Japan as a crucial market for them and the company’s this agreement with Panasonic will be a major milestone for building closer ties in the country.
The Finnish firm will try to achieve its aim of strengthening and improving its quality and efficiency control for product development and R&D through the help of this acquisition.
Though this acquisition, Nokia will also be successful in increasing and strengthening its market share in Japan for base station systems and related wireless equipment.
The statement released by the Finnish firm also clearly mentions that the firm will take advantage of its long global experience and technical leadership title in the broadband market in order to grow its business by leaps and bounds in the recently acquired domestic carrier segment on a global level.