Ericsson is set to buy Nortel Networks’ Chinese telecom joint venture Guangdong Nortel for about US$50 million in cash.

Nortel owns 62 per cent of Guangdong Nortel.

The division was established in 1995 to provide the region with certain telecom equipment and services for CDMA and GSX wireless networks as well as support for Nortel landline network switches.

Nortel said it plans to close the sale in the first quarter of next year, and the transaction is still subject to certain price adjustments, regulatory approval and other conditions. "This sale is a milestone in that it is the last of Nortel's significant business divestitures," said Nortel's chief strategy officer George Riedel.

All of the division's 1,100 employees will be offered jobs with Ericsson, the company said.