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Ericsson and STMicroelectronics close transaction for spilt up of ST-Ericsson joint venture.

NORDIC BUSINESS REPORT-August 6, 2013-Ericsson and STMicroelectronics close transaction for spilt up of ST-Ericsson joint venture(C)2013 M2 COMMUNICATIONS

Ericsson (Nasdaq: ERIC)(STO:ERICB.ST) and semiconductor company STMicroelectronics (NYSE: STM) announced on Monday the closure of the transaction for the split up of ST-Ericsson.

This follows the 18 March 2013 announcement by the companies on the chosen strategic option for the future of the joint venture.

Under this transaction, effective 2 August 2013, Ericsson has taken on the design, development and sales of the LTE multimode thin modem solutions, including 2G, 3G and 4G interoperability. In total, approximately 1,800 employees and contractors have joined Ericsson.

ST has taken on the existing ST-Ericsson products, other than LTE multimode thin modems, and the GNSS (Global Navigation Satellite System) connectivity solution sold to a third party, and related business as well as certain assembly and test facilities. In total, approximately 1,000 employees have joined STMicroelectronics.

Also, both Ericsson and ST have taken the expenses and the margin of their respective activities since 2 March 2013.

Reportedly, the close down of the remaining parts of ST-Ericsson has started and both parents are assuming equal funding of the wind-down activities.

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Publication:Nordic Business Report
Date:Aug 6, 2013
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