The European Commission announced that it has approved the merger between the Networks Business Group of Nokia and the carrier-related operations of Siemens into a new company, that will be called Nokia Siemens Networks. The European Commission believes that the transaction will not restrict effective competition in the relevant markets of mobile and fixed telecommunications networks and services.

"We believe this decision by the European Commission is a key milestone in obtaining all the relevant approvals for the transaction. While there are notifications still pending in some countries, based on this decision we are optimistic that the merger can be closed within the timetable anticipated by both parties," said Simon Beresford-Wylie, CEO designate of Nokia Siemens Networks.

"Nokia Siemens Networks will have the scale and broad product portfolio necessary to compete globally and create value for shareholders. We will be well-positioned to help our customers meet the challenges of lowering costs, growing revenue, and seizing the opportunities presented by converging technology," Beresford-Wylie added.

On June 19, 2006, Nokia and Siemens made public their plans to combine Nokia's Networks business group and Siemens' carrier-related operations for fixed and mobile networks into a new company called Nokia Siemens Networks. The new company, with pro forma revenues of EUR 15.8 billion in 2005 will deliver a wide range of products and solutions for the converging telecommunications market. Nokia and Siemens expect the operations of the new company to start in January 2007.