Nortel, LG Elec sign telecom venture deal
Reuters , Seoul
Canada's Nortel Networks Corp and LG Electronics signed a deal on Wednesday to create a $295 million telecom equipment joint venture in South Korea, aiming to grab a bigger slice of fast-growing Asian markets. LG's strengths in mobile phones complement Nortel's network infrastructure expertise and wide marketing reach, analysts said, while the venture could also be a springboard for the Canadian firm to expand into the rest of Asia, especially China. Nortel, the world's third-largest telecoms equipment provider, will pay $145 million for 50 percent plus one share in the venture, with LG owning the rest, the two companies said in a statement.
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