Nortel Networks announced on December 1, 2010 that the company and Ericsson (China) have entered into an agreement for the sale of GDNT (Guangdong Nortel Telecommunication Equipment), according to a press release by Nortel. Established in 1995, GDNT is a joint venture among Nortel, Nortel China, and several third party companies. It is reported that Nortel and Nortel China together own 62% of GDNT, and as per the agreement, Ericsson is projected to acquire the total 62% asset share. The agreement is valued at approximately US$50 million in cash and is subjected to government approval, other conditions, and purchase price adjustments. It is expected that all the 1,100 employees currently working for GDNT will be offered jobs by Ericsson. Nortel and Ericsson plan to close the deal in the first quarter of 2011.