BEIJING, June 19 (Xinhuanet) -- European telecom makers Nokia Corp. and Siemens AG have agreed to combine their telephone equipment units in a deal worth around 31.6 billion U.S. dollars, the Wall Street Journal reported on Sunday.

    The combined company would contribute both of their network equipment operations into a new entity to be based in Nokia's home country of Finland, the Journal reported, with Nokia retaining a majority of board seats.

    The cross-border deal, which was approved by the boards of both companies, would create the world's third-largest network equipment concern behind Ericsson and a combined Lucent and Alcatel, which announced plans to merge three months ago.

    The transaction is also likely to put considerable pressure on Motorola, which will fall to No. 4 network equipment maker in the world, just as its business is turning around as a result of its hot-selling Razr cellphones. Enditem

    (Agencies)