South Korea’s LG Electronics and Nortel Networks of Canada are forming a telecom equipment joint venture to tap the fast-growing telecom market in Asia. The joint venture, to be called LG-Nortel, will offer telecom and networking solutions in the wireline, optical, wireless and enterprise areas for South Korea and the global market. Nortel will invest $145 million to own 50 per cent plus one share, while LG Electronics will have 50 per cent minus one share.
LG-Nortel is to be set up by the end of 2005 with a capitalisation of Won300 billion ($295 million). The South Korean company expects the deal to help it accelerate its push into the global handset market for the CDMA and GSM standards.
