Nokia and China Huaxin sign definitive agreements for creation of new Nokia Shanghai Bell joint venture

Nokia Corporation      
Stock Exchange Release
May 18, 2017 at 09:00 (CET +1)

Nokia and China Huaxin sign definitive agreements for creation of new Nokia Shanghai Bell joint venture

Beijing, China - Nokia and China Huaxin Post & Telecommunication Economy Development Center ("China Huaxin") today signed the definitive agreements of the proposed integration of Alcatel-Lucent Shanghai Bell Co. Ltd. (ASB) and Nokia's China business. The new joint venture will be branded as Nokia Shanghai Bell (NSB).

As a result of today's announcement, the joint venture will become Nokia's exclusive platform in China for the continued development of new technologies in areas like IP routing, optical, fixed and next-generation 5G; and with the support of Nokia, NSB will continue to look for opportunities in select overseas markets.  

ASB and Nokia's China business have been effectively operating as one entity since January 2016 when an interim operational agreement was signed.

The closing of today's agreement, targeted to happen in July 2017, is subject to various customary administrative, legal, regulatory and other conditions. Nokia will own 50% plus one share of NSB, with China Huaxin owning the remainder, and the new joint venture will have one board of directors and one management team. 

NSB will represent the major part of Nokia's overall Greater China business and fully leverage both shareholders' strengths, including innovation, global scale, efficiency and a deep understanding of the local market; and with the aim of increasing Nokia's market presence in China. It will further Nokia's strategic goals of leading in high-performance networks with communication service providers and expanding to new vertical markets in enterprise, public sector, and cloud/internet companies.

NSB research and development (R&D) will be an integral part of Nokia's global R&D community, with a total of around 16 000 personnel, including 10 000 researchers, working across six R&D sites in China. It will maintain and further enhance Nokia's world-class product and research capabilities in areas that include 5G, IoT and Cloud.

NSB's R&D scope and activities will be carried out according to Nokia's applicable policies, global R&D processes and product roadmaps. NSB will also support strategic initiatives of the Chinese government and engage in long-term research projects aligned with and implementing Nokia Bell Labs' Future X Network.