Regent Logo

Mergers and Acquistions News

Categories: Telecoms

December 1st 2010, 17:14PM

The ailing Nortel Networks Corporation, a former Canadian telecoms giant, has confirmed it will sell nearly all assets of its Chinese joint venture, Guangdong Nortel Telecommunication Equipment (GDNT), to Ericsson China for $50 million (£32 million).

GDNT is a joint venture between Nortel, its subsidiary Nortel China, and other third parties. Nortel owns 62 per cent.

Established in 1995, GDNT provides telecoms equipment and services for code division access, digital multiplex systems and GSM technologies.

The deal is expected to close in the first quarter of 2011, subject to regulatory approval and other conditions.

All GDNT workers will get jobs with Ericsson, Nortel said.

"This sale is a milestone in that it is the last of Nortel's significant business divestitures, which sales have preserved both Nortel's technology innovation and its rich base of skilled employees," George Riedel, Nortel's chief strategy officer, said.

"The sale of the GDNT business to Ericsson provides a path forward for approximately 1,100 employees," he added.

In January 2009, Nortel filed for bankruptcy. The selling of GDNT is part of its strategy to raise money to give back to shareholders.ADNFCR-1833-ID-800267090-ADNFCR

 

Related News