LG Electronics and Nortel to Create Joint Venture
Jan 24, 2005
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Canada's Nortel Networks Corp. signed an agreement with South Korea's LG Electronics Inc. to set up a joint venture to manufacture and market high-quality telecommunications equipment. LG Electronics is one of South Korea's largest maker of home appliances, and Nortel is a major telecommunications equipment supplier.

The preliminary agreement was announced in Seoul, and the two companies are expected to finalize the deal for the 50-50 joint venture in the second quarter of this year. Financial details of the deal were not immediately available.

The companies said in a statement that the joint venture, which will be based in South Korea, will produce telecommunications equipment and networking solutions to Korea and other markets.

"Our intent is to invest in Korea to leverage the wealth of strong R&D talent and technology steeped in LG Electronics and Nortel to develop products and solutions for the global market," said John Giamatteo, president of Nortel's Asia Pacific division. (nctimes.com)

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