Canadian telecom equipment maker Nortel Networks has sold its Chinese JV, Guangdong Nortel Telecommunication Equipment (GDNT), to Swedish mobile network equipment maker Ericsson for US$50m.
Nortel Networks and Nortel China own 62% of the CDMA and GSM…
Canadian telecom equipment maker Nortel Networks has sold its Chinese JV, Guangdong Nortel Telecommunication Equipment (GDNT), to Swedish mobile network equipment maker Ericsson for US$50m.
Nortel Networks and Nortel China own 62% of the CDMA and GSM equipment maker, with the rest held by other shareholders. The sale is expected to close at the beginning of next year and is subject to regulatory approval.
“This sale is a milestone in that it is the last of Nortel’s significant business divestitures, the sales of which have preserved both Nortel’s technology innovation and its rich base of skilled employees,” George Riedel, Nortel’s chief strategy officer, said in a statement.
Nortel filed for bankruptcy protection in January 2009 and has since been selling off assets in an effort to pay down its debt.
Following the acquisition, Ericsson expects GDNT to become an important supplier to the company.
“The acquisition greatly complements our existing R&D, manufacturing and services capabilities in the region,” said Mats H Olsson, president of Ericsson China & North East Asia, in a separate statement. “It will no doubt allow us to provide even better support to our customers across the region, who are serving one of the largest GSM and CDMA subscriber bases in the world.”
Ericsson was advised on the acquisition by SEB Enskilda.
Nortel could not be reached for comment before going to press.
