Marconi agrees £1.2bn deal with Ericsson

25/10/2005 - 09:33:57
Struggling telecoms equipment group Marconi agreed to sell off the bulk of its assets to rival Ericsson today in a deal worth around £1.2bn (€1.77bn).

The Swedish firm will take on the Marconi trademark as well as a range of equipment-based operations, leaving the remainder of the UK company as a services provider to telecoms companies.

The deal includes an initial contribution of £185m (€273m) to ensure the rights of 69,000 members of Marconi’s UK pension plan are protected.

Marconi currently employs around 9,000 people worldwide, with 2,000 staff in the UK set to be retained within the business not being acquired by Ericsson. That operation will be renamed Telent.