Huawei still causing delay in Nokia Siemens Motorola buyout

Nokia Siemens has been dealt another blow in a bid to acquire Motorola’s wireless networks infrastructure assets.

Today it announced that the deal is still pending anti-trust approval from the Chinese regulatory authorities.

“Closing activities will not be completed in the first quarter of 2011 as previously targeted,” it said in a statement.

Nokia Siemens Networks remains committed to the acquisition but will provide no further guidance on when it is likely to be completed.”

We bet it didn’t expect all this fuss when it announced plans to acquire the company back in July last year. At the time it said it would buy the better part of Motorola’s network equipment business for $1.2 billion, and said the deal would be done and dusted by the end of 2010.

It obviously didn’t anticipate the all powerful Huawei sticking its oar in. In January it kicked up a stink and took legal action to block Motorola from what it claimed was the illegal transfer of  its intellectual property to Nokia Siemens Networks.

Huawei and Motorola have had a working relationship in the radio access network and core network businesses since 2000. Throughout this time Motorola resold Huawei wireless network products to customers under the Motorola name. Hauwei also claims that during this period, it provided Motorola with products and confidential Huawei IP developed by the company’s 10,000 engineers.

The company went crying to the courts and two days later pushed the judge to put a restraining order in place.

“The proposed acquisition has entered phase three of the review process with the Anti-Monopoly Bureau of the Ministry of Commerce in China (MOFCOM),” Nokia added in its statement.