Nokia Corporation and Siemens AG have reportedly entered into a definitive agreement pursuant to which Nokia acquires Siemens' 50 per cent stake in their joint venture, Nokia Siemens Networks (NSN).

The purchase reportedly totals EUR 1.7 billion, ($2.2 billion), of which EUR 1.2 billion will be paid in cash once the transaction is concluded. The balance amount of EUR 0.5 billion will be paid in the form of a secured loan from Siemens due one year from closing. Nokia has obtained committed bank financing for the EUR 1.2 billion cash portion.

The purchase price for Siemens' stake is EUR 1.7 billion and the transaction is expected to close during the third calendar quarter of 2013. Upon closing of the planned acquisition, NSN will become a wholly owned subsidiary of Nokia.

As per news reports, the board of directors at both companies have approved of the acquisition and it is now subject to the regulatory approval process.

In accordance with this transaction, the Siemens name will be phased out from NSN's company name and branding. Nokia and NSN reportedly plan to announce the new name and brand after the transaction is concluded.