December 3, 2012 / 10:28 AM / 5 years ago

Nokia Siemens to sell optical networks unit

FRANKFURT (Reuters) - Mobile telecoms equipment maker Nokia Siemens Networks (NSN) said on Monday it is to sell its optical fibre networks unit to Marlin Equity Partners.

A red traffic light is pictured next to the company logo of Mobile network equipment maker Nokia Siemens Networks (NSN), in Munich November 29, 2012. REUTERS/Michael Dalder/Files

NSN didn’t give any financial details for the sale but said it would be completed in the first quarter of next year.

As a result of the deal as many as 1,900 employees, mainly in Germany and Portugal, will be transferred to the new company, NSN said in a statement.

Nokia Siemens Networks, which competes with Ericsson (ERICb.ST), Huawei HWT.UL and Alcatel Lucent ALUA.PA, is undertaking a cost-cutting plan, which includes laying off a quarter of its staff and selling product lines to focus on mobile broadband.

The joint venture between Nokia Oyj NOK1V.HE and Siemens AG (SIEGn.DE) has been a drain on profits for owners Nokia and Siemens but it reported record profits in the third quarter, helped by sales of equipment for fourth-generation high-speed LTE networks in Japan and Korea.

The restructuring is expected to result in 1 billion euros of cost savings by the end of next year. (Reporting by Harro ten Wold; Editing by Greg Mahlich)

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