Ericsson is planning to sell its 50 per cent stake in Sony Ericsson to Sony for $1.47 billion, say news reports.
According to a statement released by Ericsson, its mobile handset business will become a wholly owned subsidiary of Sony after the stake sale.
The Japanese-Swedish group was created in 2001. In its statement, Ericsson added, ?Ten years ago, when we formed the joint venture, Sony?s consumer products knowledge and Ericsson?s telecommunication technology expertise were combined to drive the development of feature phones. Today, we take an equally logical step, as Sony acquires our stake in Sony Ericsson and makes it a part of its consumer devices portfolio.?
The statement further said that the company plans to focus on the wireless market.
Ericsson also said that the transaction had been approved by both companies, but still required regulatory approvals. It is expected to close in January, 2012.
