DOW JONES NEWSWIRES
The Canadian government endorsed Nortel Networks Corp.'s (NRTLQ) agreement to sell its wireless networks business to L.M Ericsson Telephone Co. (ERIC) for $1.13 billion.
Tony Clement, Canada's minister of industry, said in a statement Wednesday that the sale would protect Canadian jobs and intellectual property.
He noted Ericsson has offered about 800 Nortel workers jobs at about the same pay and benefits and based in the same location. In addition, the sale includes a non-exclusive licensing agreement for long term evolution wireless technologies that leaves the property rights to the patents for those technologies with Nortel.
"The federal government remains committed to the information and communications technologies sector and looks forward to Ericsson remaining a significant driver of ICT productivity in Canada," Clement said, adding Ericsson has invested more than $2 billion in research and development in Canada in the past decade.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com