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Nokia to divest automotive biz

Posted: 30 Jan 2008     Print Version  Bookmark and Share

Keywords:automotive business  Nokia  communications 

Finnish handset maker Nokia is in negotiations to divest its automotive business to the former head of its enhancements unit and automotive business, Razvan Olosu, and Equity Partners GmbH.

If the negotiations push through, the transaction will enable employment for the personnel in the current automotive entity at the new company. Nokia will start consultations with the works council about the transfer of the automotive business including the transfer of the affected employees to the new company.

"We are happy to negotiate with Razvan Olosu and Equity Partners GmbH about selling our automotive business to them. If successful, this deal will enable employment for the affected employees. It would also allow for smooth continuation of the business and customer relationships in the new company," said Heikki Tenhunen, head of enhancements at devices unit, Nokia. "Razvan Olosu has an established position in the automotive business, and we are confident that with his experience and the backing of his financial partner, the automotive business will continue to be in good hands."

Razvan Olosu commented, "We plan to strengthen our main operations in Germany and the USA, and increase the focus and dedication in serving our customers in the automotive industry. I expect the newly formed company to continue to play a leading role in the growing market for automotive communications and multimedia solutions, and position itself at the forefront of innovation in the industry. With Equity Partners we found a strong and experienced partner willing to support us in achieving our long-term goals."

The parties anticipate that the deal could be closed in the first half of 2008.

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