LG Electronics and Nortel today signed a memorandum of understanding to establish a joint venture for providing telecoms and networking equipment for global customers.
The announcement was made in Seoul by LG chief executive and vice chairman S S Kim, and Nortel president and chief executive Bill Owens.
Owens said that, for Nortel to compete globally, it is imperative for the company to expand its market share and compete in Asia.
Kim added: "Our joint venture with Nortel is expected to create greater synergy between LG's cutting-edge technology and Nortel's expertise in delivering communications capabilities."
The proposed joint venture is subject to the execution of a definitive agreement. The two companies expect to complete the transaction in the second quarter of 2005. Nortel will have 50 per cent plus one share of the venture.
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