Mobile network equipment maker Ericsson said it has hiked its stake in the LG-Ericsson joint-venture to 75%, up from 50%.
In 2010, Ericsson bought Nortel Networks’ controlling stake in the JV with LG Electronics for $242m.
LG-Ericsson, set up in 2005, is a supplier to Korean telecom operators such as KT Corp, LG Telecom and SK Telecom, according to Reuters.
Ericsson spokesman Tobias Gyhlenius was quoted by Bloomberg as saying that the company was very happy with the investment and its position in the Korean market, and that’s the rationale for increasing the stake.
The JV, headquartered in Seoul, has a workforce of 1,300, of whom 700 work on research and development of third-generation and fourth- generation wireless technology, Gyhlenius said.
