Ericsson's $1.1bn bid to buy the core wireless assets of
Canada's Nortel Networks has been given the go-ahead by bankruptcy
courts in the US and Canada.
Nortel filed for
bankruptcy protection in January in the US and Canada to give
the company the opportunity to deal with costs, debts and
restructuring.
The court approval means the break-up of Nortel can go ahead,
unless the sale is opposed by the Canadian government.
Rejected Canadian bidder
Research in Motion and the Ontario government have called on
the federal government to block the sale.
The acquisition will see some of Canada's most prized technology
assets fall under foreign control.
Canada's industry minister Tony Clement has indicated the
government is considering the options, according to the
Financial Times.
The Canadian government could use foreign investment laws that
make any deal valued at more than $288m subject to state
approval.
Sweden's Ericsson outbid Nokia Siemens and MatlinPatterson over
nearly 12 hours in an auction in New York on Friday for Nortel's
profitable CDMA wireless business and its next-generation LTE
operations.
Analysts said the deal will significantly expand Ericsson's
footprint in North America, mark its return to the CDMA business
and consolidate its position as a telecoms equipment supplier.