Ericsson acquires shares in North China Electric Joint Venture Company (lg-)

Ericsson (Nasdaq:eric) has reached an equity acquisition agreement to buy lg-majority stake in Nortel Networks (50%+1), and lg-Nortel is a joint venture between LG Electronics and Nortel Networks.　　The deal remains to be approved by regulatory authorities. The acquisition will significantly expand Ericsson's market share in South Korea and provide Ericsson with sophisticated sales channels and strong research and development capabilities in Korea.　　The acquisition will also provide Ericsson with an industrial base and the ability to build new customer relationships.　　The JV Company has important contracts with South Korean operators such as KT, LG Telecom and SK Telecom.　　lg-Ericsson will become one of the leading companies in the Korean telecom market. "South Korea is one of the world's largest telecoms markets, with mature end-users and a thirst for new services," said Hans Vestberg, president and CEO of Ericsson Vestberg. By working with the new partner LG Electronics, we will consolidate Ericsson's position in the Korean market and thus strengthen our position in future technological reforms such as LTE. "LG Electronics is delighted to be partnering with Ericsson through the joint venture," said Nan Xi, vice chairman and chief executive of LG Electronics. "Ericsson will provide global industry experience and technical expertise that our customers and employees will benefit from." We look forward to fruitful results in future cooperation. Jae Ryung Lee, Lg-'s chief executive, said: "lg-Ericsson will provide Ericsson with the world's leading advanced technology and customer support in the telecom market." We are excited about the new prospect of our company. "The joint venture was founded in 2005, and LG Electronics is mainly engaged in telecommunications system business, while Nortel is mainly engaged in distribution operations in South Korea." The JV's business focus is on developing and marketing large telecommunications systems, such as WCDMA, CDMA and LTE, and enterprise products and services for Korean telecom service providers.　　In 2009, Lg-'s sales reached about $650 million trillion, with 1300 employees.　　The joint venture headquarters will continue to be located in Seoul, South Korea. In July 2009, Ericsson and the South Korean government agreed to collaborate on a green ecosystem based on 4G technology.　　lg-Ericsson's strength will help drive the implementation of the plan.　　The deal is expected to have a positive impact on Ericsson's earnings after a year of completion. SEB Enskilda is the exclusive financial advisor to Ericsson in this transaction.