Ericsson and Sony seal mobile phone deal

Ericsson and Sony have all but finalised an agreement to merge their mobile phone handset businesses, as first mooted in April.

The joint venture will be established on 1 October and will see the companies jointly design, brand, distribute and market handsets. The pair are basing the new operation in London, and will initially employ 3500 people.

Sony is looking to increase its market share outside Japan, while Ericsson gains Sony's Japanese experience of third-generation and more marketing know-how. The deal is still subject to regulatory and final board approval.

Combined, the two firms have a 12 per cent share of the global market behind Finland's Nokia and US outfit Motorola.