EU Backs Ericsson's $65M Purchase Of Nortel Unit

Law360, New York (March 2, 2011, 2:57 PM EST) -- European Union competition regulators on Wednesday approved Telefonaktiebolaget LM Ericsson's $65 million purchase of bankrupt Nortel Networks Corp.’s multiservice switch business, saying the transaction would not significantly impede competition.

The European Commission said that because the Nortel unit Ericsson is purchasing only provides replacement, add-ons and extensions to customers' existing data routers, there were no competition concerns related to Nortel and Ericsson's overlapping businesses in Europe. That assessment conformed with comments submitted by Ericsson in February.

The competition review did turn up one potential area of...
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