Nokia is all set to buy a part of Panasonic’s network business in order to grow its operations in Japan and to reinforce the mobile broadband portfolio, as a report suggests. With this acquisition Nokia aims to enhance the efficiency and quality control for the products and also to improve the R&D strategy. As per the deal between both the companies certain fixed amount of business contacts and Panasonic’s customers will be transferred to Nokia Networks in Japan. This transfer also includes the shift of employees involved in the business.
Speaking about this new acquisition by Nokia, Ashish Chowdhary, of Executive Vice-President (AMEA) Nokia Networks said, Japan is a key market for us, and this agreement is a major milestone in forging closer ties in Japan. The acquisition of part of Panasonic’s wireless network business would further strengthen our mobile broadband portfolio and add significant value for Japanese operators.”
This deal will also boast up the market share of Nokia, which covers base station systems and wireless equipment in Japan. Moreover, the acquisition will also improve the global and technical experience. The company also claimed in a statement that, “Nokia Networks has entered into a memorandum of understanding to acquire part of the wireless networks business of Panasonic System Networks Company Ltd.”
This deal includes the Panasonic’s mobile phone (LTE/3G) wireless base station system business for mobile operators and related wireless equipment system business. Both the companies are planning to conclude the agreement by the end of September with the clause of introducing some customary changes if required.