Deals
STMicroelectronics, Ericsson End Venture After Failed Sale
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STMicroelectronics NV and Ericsson AB agreed to split up their unprofitable ST-Ericsson chip venture after failing to find a buyer for the business, cutting about 1,600 jobs as they divide the assets.
Ericsson said today it plans to assume about 1,800 of the venture’s 4,350 employees and contractors in countries including Sweden and Germany, and will continue developing ST-Ericsson’s modem technology. STMicroelectronics will take on the venture’s existing products and 950 employees, mainly in France and in Italy, and incur costs of as much as $450 million.