Nokia and Siemens to combine equipment units

Jun 18 2006 - 07:38 PM ET | Nokia, Siemens

The Wall Street Journal is reporting that Nokia and Siemens will announce a merger of their phone equipment divisions tomorrow. The deal is valued at $31.6 billion dollars and will see both companies controling a 50% stake. The new company will have a different name but will not be traded separately.

The entity will be run by Nokia executive Simon Beresford-Wylie in the role of chief executive, people close to the deal say. While the move does not mark an official exit from the telecom business by Siemens, the company is expected to play a smaller role than Nokia in the new company.

Update: It's official.