This venture came into being after Ericsson acquired Nortel's majority shareholding in LG-Nortel JV
NEW DELHI, INDIA: The joint venture between networking equipment maker Ericsson and LG Electronics, an electronics and telecommunications product maker, LG-Ericsson, had been officially launched.
This venture came into being after Ericsson acquired Nortel's majority shareholding (50 percent +1 share) in LG-Nortel JV(the joint venture of LG Electronics and Nortel Networks), last week, on April 21, for $242 million.
The LG-Nortel joint venture, established in 2005, was to develop and market WCDMA, CDMA and LTE for telecom service providers in Korea as well as enterprise products and services. In 2009, LG-Nortel generated approximately $650 million of sales and had 1,300 employees.
"The completion of this acquisition significantly expands our position in Korea and shows our commitment to the market," said Mats H. Olsson, president, Ericsson China and North East Asia. "The skill and experience from the LG-Nortel employees will be key to continue to provide leading technology and services to our customers."