Ericsson acquires majority stake in LG-Nortel

Telecoms company Ericsson has entered into a share-purchase agreement to acquire Nortel’s majority shareholding (50 per cent +1 share) in LG-Nortel, the joint venture of LG Electronics and Nortel Networks.

The acquisition will significantly expand Ericsson’s footprint in the Korean market and provide the company with an established sales channel, and strong research and development capability in the country.

The transaction is subject to regulatory approvals and is expected to have a positive effect on Ericsson’s earnings within a year after closing.