The European Commission has approved the planned transaction to merge the Networks Business Group of Nokia and the carrier-related operations of Siemens into a new company, Nokia Siemens Networks.

According to the Commission’s assessment, the transaction would not restrict effective competition in the relevant markets of mobile and fixed telecom networks and services.

‘We believe this decision by the European Commission is a key milestone in obtaining all the relevant approvals for the transaction,’ said CEO designate of Nokia Siemens Networks, Simon Beresford-Wylie. ‘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.’

On June 19, 2006, Nokia and Siemens announced plans to combine Nokia’s Networks business group and Siemens’ carrier-related operations for fixed and mobile networks to form Nokia Siemens Networks.

Nokia and Siemens expect the new company, with 2005 calendar year pro forma revenues of €15.8 billion, to start operating in January 2007.