Telecom equipment manufacturers, Nokia and Siemens have decided to merge their mobile and fixed line phone network equipment businesses to create one of the world’s biggest network firms. Both will have a 50 per cent stake in the infrastructure company, to be based in Finland. The firms predict annual sales of 16 billion euro and cost savings of 1.5 billion euro per year by 2010. The value of the deal, due to be completed by January 1, 2007, is reportedly about 25 billion euro. The merger will enable the two companies to jointly bid for the $5 billion BSNL tender.
