Ericsson gets LG-Nortel stake


Ericsson gets LG-Nortel stake

Alex Scroxton
Ericsson has picked up Nortel's 50% plus one share stake in its JV with Korean electronics giant LG for $242m (£156.8m) on a cash and debt free basis.

Subject to regulatory approval, the profitable mobility and NGN venture will be renamed LG-Ericsson and will significantly expand Ericsson's footprint in South Korea as well as giving it access to a thriving EMEA business.

The venture generated sales of $650m last year and was not placed in Chapter 11 alongside its senior parent.

It was started in 2005 as a tie-up between LG's telecoms business and Nortel's Korean distribution unit.

"A strengthening of our position  through the collaboration with our new partner will enhance our position for future technology shifts such as LTE," said Ericsson CEO Hans Vestberg.

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