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Abengoa agrees to transfer fiber services unit to Ericsson

Spanishconglomerate Abengoa SA has inked an agreement to transfer its fiber servicessubsidiary Abentel to EricssonAB for an undisclosed amount.

The deal will enable Ericsson to expand its range ofsolutions and create a global hub for fiber services, according to a July 6news release.

About 500 Abentel employees will join the tech giant upon the deal's completion, which isexpected during the third quarter of 2016, subject to the approval of Spain'santitrust authority.

In a separate July 6 release, Abengoa said the transactionis part of a divestiture plan that seeks to reduce the company's debt.

Abentel provides fiber-optic and copper network design andmaintenance services to operators in Spain and other countries.