Nokia Siemens Networks said it should complete its acquisition of Motorola's wireless infrastructure assets in the first quarter of 2011.
The $1.2 billion deal was originally announced in July. While the company has received antitrust approval from the several countries, including the U.S., that has not happened yet in China.
This delay is disappointing, but we're looking forward to completing the acquisition early in the new year, said Rajeev Suri, chief executive officer of Nokia Siemens Networks, in a statement. We are continuing to work closely with the authority in China to finalize the clearance process in that country. We recognize its efforts in addressing this case as a matter of importance.
Nokia spokesman Ben Roome said there was no regulatory problem; the Chinese government is just taking longer. He noted that any effect on Nokia Siemens' earnings should be in the first quarter of 2011, and those results will be out sometime in April.
The acquisition would leave Nokia Siemens Networks with the bulk of Motorola's wireless infrastructure business. Approximately 7,500 employees are expected to transfer to Nokia Siemens from Motorola's wireless network infrastructure business when the deal closes, including large research and development sites in the United States, China and India. Motorola retains the iDEN business as well as almost all the wireless network infrastructure patents.