Siemens Cell Phones

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Siemens News

Why suppliers get the urge to merge
published 2006-08-08

Mergers appear to be the order of the day. Last month saw the creation of Nokia Siemens Networks (NSN), which was hot on the heels of Alcatel’s $14bn purchase of Lucent. These moves follow last year’s $2bn raid by Ericsson on the remains of Marconi. These mergers have to happen, we’re told, because of low-cost competition from Far Eastern companies such as China’s Huawei. But are mergers really the best way to counter Asian competition? Certainly, they bring scale, but is that enough?

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