UPDATE: Nokia Siemens' Purchase Of Motorola Assets Delayed

(Adds detail)

 
   DOW JONES NEWSWIRES 
 

Telecom equipment vendor Nokia Siemens Networks said its acquisition of most of Motorola Inc.'s (MOT) network equipment business will close later than expected, as a Chinese regulator hasn't approved the deal.

The companies, which announced the deal in July, had originally expected it to close by the year's end. But the antitrust arm of China's Ministry of Commerce is continuing its review of the transaction, Nokia Siemens said Tuesday. All other necessary clearances have been obtained, including approvals from the U.S., Japan and the European Union.

It now expects the deal to close in the first quarter.

"We are continuing to work closely with the authority in China to finalize the clearance process in that country," Chief Executive Rajeev Suri said. "We recognize its efforts in addressing this case as a matter of importance."

The acquisition would boost the position of Nokia Siemens, a joint venture between Finland's Nokia Corp. (NOK, NOK1V.HE) and Germany's Siemens AG (SI, SIE.XE), in markets like the U.S. and Japan and gain it access to new customers. Executives also expected it to provide economies of scale and synergies in areas such as mobile broadband.

Meanwhile, Motorola is narrowing its operations as it plans to split itself into two companies early next year, separating its enterprise mobility and public safety units from its mobile devices and television set-top box businesses.

About 7,500 employees are expected to transfer to Nokia Siemens from Motorola after the deal closes.

Nokia Corp.'s American Depositary Shares were off 4 cents at $10.18 in recent trading, while Siemens was down 0.6% at $123.70. Motorla was flat at $8.99.

-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; [e-mail]