Nokia + Siemens = Nokia Siemens Networks

Thats right Nokia has merged with Germany based Siemens in a combined value of Euros. 25 billion. Following the merger share prices of Nokia and Siemens have jumped by 3.1% to Euros 16.14 and by 8.3% to Euros 68.03 respectively. But as we all know for every action there is equal and opposite reaction, this merger will slash jobs by 9000 from a combined workforce of 60,000 in a drive to cut costs by Euros 1.5 billion annually. Under pressure from its investors, Siemens has sold its mobile handset divison to Taiwan based BenQ.

This has been the next merger following the merger between Alcatel of France and Lucent Technologies of the USA. Also some of the researchers are optimistic about the recent deal here is what Gartner says:

"This looks like a stronger merger than that of Alcatel and Lucent. It improves the portfolio in mobile infrastructure and though there are some overlaps, the combined group will increase market share," she said.
"The story in fixed line is a little foggier, but there will be efficiencies there as fixed-mobile convergence takes place." says Bettina Tratz-Ryan a research director at Gartner.

The 50-50 partnership, which will be called Nokia Siemens Networks, will have €15.8 billion in annual sales, placing the new group in the network industry's premier league. According to Nokia, the merged company will rank No3 in the market, behind market-leader Ericsson and the newly-merged Alcatel-Lucent.