UPDATE 1-Ericsson sees above 10 pct margin for Nortel unit

* Ericsson CFO says expects Nortel deal to close in Q3

* Says expects synergies in sales, services and R&D

* Says some regulatory issues remain, confident on closure

(Adds further details, background, quotes)

STOCKHOLM, July 27 (Reuters) - Telecoms equipment maker Ericsson (ERICb.ST) said on Monday it expected the wireless business set to be acquired from Nortel [NRTLQ.PK] to produce a double-digit operating margin.

Chief Financial Officer Hans Vestberg also said he saw the the deal, expected to close in the third quarter, as generating synergies within sales, services and research and development. "Yes, we believe this operation can be above 10 percent operating margin," Vestberg, due to becoming chief executive of the group at the turn of the year, told a conference call.

The Swedish company said at the weekend it had won an auction to buy the wireless assets of Nortel Networks Corp (NRTLQ.PK) in a $1.13 billion deal. [ID:nN25483564]

The assets include Nortel's businesses in the CDMA wireless technology used in North America and in the new LTE (Long Term Evolution) high-speed wireless technology that many of the world's biggest operators plan to use to upgrade their telecommunications networks, as well as some patents.

Ericsson said in a statement at the weekend that the transaction was expected to have a positive effect on its earnings within a year after the closing of the deal. (Reporting by Sven Nordenstam and Niklas Pollard; Editing by Greg Mahlich)