Steve Ballmer and Risto Siilasmaa shake hands
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Nokia and Microsoft bosses on 'win-win' deal

3 September 2013 Last updated at 10:28 BST

Microsoft has agreed a deal to buy Nokia's mobile phone business for 5.4bn euros ($7.2bn; £4.6bn).

The purchase is due to be completed in early 2014, when about 32,000 Nokia employees will transfer to Microsoft.

While Nokia has struggled against competition from Samsung and Apple, Microsoft has been criticised for being slow into the mobile market.

Giving a news conference in Finland, Nokia Chairman and interim CEO Risto Siilasmaa said the transaction had been "complicated" emotionally but made rational sense: "The industry is becoming a duopoly... Many established players have disappeared."

Outgoing Microsoft chief executive Steve Ballmer described the move as "a bold step into the future" and "win-win" for employees, shareholders and customers.