Ericsson to Buy Nortel's Stake in LG-Nortel
April 23, 2010
Sweden's Ericsson has reached an agreement to
buy Nortel's 51% stake in LG-Nortel, a telecom equipment venture set up in
2005, Reuters reported on April 21. It is reported that Ericsson will spend
US$242 million on the deal, and the venture will thereby be renamed
LG-Ericsson. LG-Nortel recorded US$650 million in sales in 2009 and numbers
major Korean telecom operators including KT, LG Telecom, and SK Telecom among
its customers. The Seoul-headquartered venture has been engaged in the
development and marketing of telecom systems such as CDMA (Code Division
Multiple Access), WCDMA (Wideband CDMA), and LTE (Long Term Evolution). The
deal is currently pending regulatory and court approvals.