Ericsson (NASDAQ:ERIC) Buys LG-Nortel Stake For $242M
Seoul, April 22, 2010 AEST (ABN Newswire) - Swedish mobile network equipment maker Telefon AB LM Ericsson (NASDAQ:ERIC) has bought Nortel's controlling stake in LG-Nortel, a joint venture between Nortel Networks and LG Electronics Inc. (SEO:066570). Nortel will sell its 50 per cent plus one share stake in LG-Nortel to Ericsson for US$242 million in Cash subject to certain purchase price adjustments.
Nortel filed for bankruptcy protection in January and was looking for a buyer for its 50 per cent plus one share in LG-Nortel. Ericsson aims to expand its footprint in Korean market through the acquisition and expects the joint venture to bring a positive effect on its earnings within a year after closing.
The joint venture will be renamed LG-Ericsson and is expected to become one of the major telecom players in Korea. LG Electronics said it remained committed to maintaining its strategic investor status in LG-Nortel. The joint venture will continue to be headquartered in Seoul, South Korea.
Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: email@example.com