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Mergers and Acquistions News

Categories: Semi-Conductors

February 4th 2009, 17:33PM

STMicroelectronics has purchased NXP Semiconductor's 20 per cent stake in ST-NXP Wireless.

The acquisition completes the merging of ST-NXP Wireless and Ericsson's mobile platforms into a 50/50 venture - the two firms announced their plans back on August 20th 2008.

STM bought the NXP stake for $92 million (£64 million) and the price was based on the ST-NXP performance over the last twelve months.

The deal was effective as of February 2nd.

In the new joint venture, Ericsson contributed $1.1 billion with $0.7 billion going to STM.

A statement on the STM website said: "The new company is designed for long-term stability and is set to become an industry leader in product research, as well as design, development, and the creation of cutting-edge mobile platforms and wireless semiconductors."

The new venture will employ around 8,000 people - 3,000 from Ericsson and 5,000 from ST - and its headquarters are in Geneva, Switzerland.
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