The Finnish telecom giant Nokia and Germany's Siemens on Monday announced their intention to merge their telecom equipment and network operations to create a leading supplier on the market.

A joint statement said each company will hold 50 percent of the new joint venture, Nokia Siemens Networks, with its annual sales forecast at 20 billion U.S. dollars.

Nokia Siemens Networks will have its operational headquarters in Helsinki, and boast strong regional headquarters in Munich, Germany, where three of the five divisions of the new company will be based.

"We believe the partnership with Siemens is the most effective way to build the scale and broad product portfolio necessary to compete globally and create value for shareholders," said Olli-Pekka Kallasvuo, CEO of Nokia.

"The communications industry is converging, and a strong and independent Nokia Siemens Networks will be ideally positioned to help customers lower costs and grow revenue while managing the challenges of converging technology," said Olli-Pekka Kallasvuo, who will serve as chairman of Nokia Siemens Networks.

Source: Xinhua