Ericsson, STMicroelectronics Close Transaction To Split Up ST-Ericsson

(RTTNews) - Ericsson (ERIC) and STMicroelectronics (STM) announced the closing of the transaction for the split up of ST-Ericsson. This follows the March 18th announcement the companies made on the chosen strategic option for the future of the joint venture. Effective August 2, 2013 Ericsson has taken on the design, development and sales of the LTE multimode thin modem solutions, including 2G, 3G and 4G interoperability. In total, around 1,800 employees and contractors have joined Ericsson.

As communicated earlier, Ericsson and ST have taken the expenses and the margin of their respective activities since March 2, 2013. The close down of the rest of the parts of ST-Ericsson has begun and both parents are assuming equal funding of the wind-down activities.

As indicated earlier, ST anticipates that its total cash costs net of proceeds from beginning 2013 through the end of the joint venture, including the covering of ST-Ericsson's ongoing operations during the transition period and the restructuring costs related to the exit from the joint venture, would range between around $300 million and $350 million.