Mobile operator Ericsson is paying USD1.13bn to buy assets from Nortel Networks, having won a bidding war against joint venture Nokia Siemens. Ericsson is buying Nortel's CDMA business and LTE Access technology.
Nortel accepted a USD650m offer from Nokia Siemens for its mobile assets in June. Private equity firm MatlinPatterson then jumped in with a counter bid of USD725m, at which point Nortel decided to open an auction. Research In Motion was considered a likely bidder, but was blocked from making an offer after a dispute with Nortel.
The deal, subject to court approval, could greatly expand Ericsson's foothold in the US and Canada. However, analysts warn that the deal could strike a blow for competition in the North American telecoms market.
StrategyEye's related categories: Mobile Operators - General, Mobile Phone Devices
StrategyEye's related companies: Research In Motion, Nortel Networks Corp., Nokia Siemens Networks, Ericsson
