April 21, 2010 - Ericsson has entered into a share purchase agreement to acquire Nortel's majority shareholding in LG-Nortel, the joint venture of LG Electronics and Nortel Networks.

The transaction announced today is subject to customary regulatory approvals.

This acquisition, financial details of which were not disclosed, is expected to significantly expand Ericsson's footprint in the Korean market and provide Ericsson with a well established sales channel and strong R&D capability in the country.

In addition, the acquisition will provide Ericsson with an industrial base and the ability to build new customer relationships.

The joint venture includes important contracts with Korean operators such as KT, LG Telecom and SK Telecom.

LG-Ericsson is expected to become one of the major telecom players in Korea. The joint venture will continue to be headquartered in Seoul, Republic of Korea.

LG-Nortel was established back in 2005 in order to make and sell WCDMA, CDMA and LTE systems to South Korean operators.