Sony's Ericsson buyout cleared by EU

Mobiledia reports.

The nearly $1.5 billion deal, announced last October, gives Sony full control of the company's smartphone development and adds patents to its library. The Sony Ericsson brand name will no longer be used on mobile devices. Instead, future smartphones will carry the name of the new business division resulting from the buyout, Sony Mobile Communication.

From now on, Sony will be using its solo name on all new mobile devices. Some of the new phones, like the much-awaited Sony Xperia S, were showcased at the recent CES, in Las Vegas, TechKnots says. Sony stated that the spilt would be finalised in mid-2012 and it would start erasing Ericsson's name soon thereafter.

Sony Ericsson lost EUR207 million in the last quarter, and for the year, was EUR247 million in the red. Sony seems to have built a strong base in the form of a solitary contender as the Sony Xperia S and the Sony Xperia ion stole the show and were two of the most talked about smartphone models at CES.

The transaction, which has been approved by appropriate decision-making bodies of both companies, was expected to close in January, subject to customary closing conditions, including regulatory approvals, Engadget notes.

As a result of obtaining full control of Sony Ericsson, Sony will consolidate Sony Ericsson from the closing date of the acquisition. The resulting impact of the acquisition to Sony's consolidated results for the fiscal year ending 31 March 2012 is currently being evaluated.