BRUSSELS, March 2 (Reuters) - Swedish mobile network equipment maker Ericsson secured European Union regulatory approval on Wednesday to acquire the multi-service switch (MSS) business of Canadian peer Nortel.
Ericsson unveiled the $65 million deal in September. Nortel, which is under bankruptcy protection, has been selling assets to pay back debtholders.
The European Commission, the EU competition watchdog, said Ericsson and rival Alcatel-Lucent of France, which uses Nortel switches, had agreed to extend a supply contract between the French company and Nortel to address competition worries.
'The proposed transaction would not lead to any competition concerns in the downstream markets for GSM or VoIP network equipment, given the limited market position of Ericsson's competitors who depend on Nortel MSS switches and Ericsson's lack of incentive to engage in such a strategy,' the Commission said in a statement.
(Reporting by Foo Yun Chee, editing by Rex Merrifield) Keywords: NORTEL ERICSSON/EU (foo.yunchee@thomsonreuters.com; tel +32 2 287 6844; Reuters Messaging: foo.yunchee.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Ericsson unveiled the $65 million deal in September. Nortel, which is under bankruptcy protection, has been selling assets to pay back debtholders.
The European Commission, the EU competition watchdog, said Ericsson and rival Alcatel-Lucent of France, which uses Nortel switches, had agreed to extend a supply contract between the French company and Nortel to address competition worries.
'The proposed transaction would not lead to any competition concerns in the downstream markets for GSM or VoIP network equipment, given the limited market position of Ericsson's competitors who depend on Nortel MSS switches and Ericsson's lack of incentive to engage in such a strategy,' the Commission said in a statement.
(Reporting by Foo Yun Chee, editing by Rex Merrifield) Keywords: NORTEL ERICSSON/EU (foo.yunchee@thomsonreuters.com; tel +32 2 287 6844; Reuters Messaging: foo.yunchee.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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