Telecom Lead Europe: Ericsson has sold its power cable business to Danish company NKT Cables for $38 million (SEK 250 million).
Ericsson has generated revenues of SEK 1.5 billion from the power cable operation in 2012.
Ericsson will transfer 320 employees and consultants, primarily based in Sweden, to NKT Cables.
NKT Cables will take over a factory in Falun, Sweden.
NKT Cables is one of the largest power cable manufacturers in Europe.
Ericsson says the power cable operation that currently resides within business unit Networks has potential to realize greater leverage and scale within NKT Cables where it will be core business.
The transaction will generate a net loss of approximately SEK -100 million and will negatively impact business unit Networks’ operating income in the third quarter, 2013.
