Ericsson buys into JV with Korea’s LG

Steve Dinneen
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SWEDEN’S Ericsson has agreed to buy bankrupt Nortel’s controlling stake in a venture with LG Electronics for $242m (£157m), to access the Korean telecoms equipment market.

Ericsson, the world’s largest mobile network equipment maker, said the deal would boost its earnings within a year of closing the deal.

Nortel, once North America’s biggest maker of telephone equipment, filed for bankruptcy protection in January and was looking for a buyer for its 50 per cent plus one share in LG-Nortel.

“This acquisition will significantly expand Ericsson’s footprint in the Korean market and provide Ericsson with a well established sales channel and strong R&D capability in the country,” Ericsson said.