|LG-Nortel Joint Venture|
Posted: 18-Aug-2005 [Source: Nortel]
[Nortel makes major move into Asian market by signing MoU with LG to begin joint venture providing telecommunications equipment and networking solutions to Korea and globally.]
Seoul, Korea -- LG Electronics and Nortel announced the signing of a Memorandum of Understanding (MoU) to establish a joint venture for providing high quality, leading edge telecommunications equipment and networking solutions to Korea and other markets globally.
The announcement of the proposed 50-50 joint venture framework was made in Seoul by S.S. Kim, CEO and Vice-Chairman of LG Electronics and Bill Owens, president and chief executive officer of Nortel.
This impending cooperation supports the strategies of both companies for ongoing development of leading-edge telecommunications equipment and networking solutions to ignite and power global commerce. The proposed joint venture also reflects the companies' commitment to leverage best-in-class resources and expertise by joining forces with leading telecommunications players in key markets.
"Our intent is to invest in Korea to leverage the wealth of strong R&D talent and technology steeped in LG Electronics and Nortel to develop products and solutions for the global market," said John Giamatteo, president, Asia Pacific, Nortel. "We also intend for the proposed joint venture to market the entire Nortel portfolio of optical, wireless, wireline and enterprise products in Korea and, based on mutual discussion, in other markets as well."
The proposed joint venture is subject to execution of a definitive agreement. The two companies expect to complete this transaction in the second quarter of 2005.
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