Corning and Furukawa Acquire Lucent's Fiber-Optic Interests
📅 - Corning Incorporated (corning.com), and Furukawa Electric Co. (furukawa.co.jp) announced yesterday that they have reached an agreement with Lucent Technologies (lucent.com) to purchase the struggling telecom equipment maker's fiber-optic cable division for $2.75 billion.
Furukawa will pay $2.525 billion, and Corning will pay $225 million in cash,and receive interests in two Chinese joint ventures. Corning's purchase ofthese interests is subject to the approvals of the other equity shareholdersof each joint venture and relevant governmental approvals.
Furukawa expects to become a major international player in the opticsindustry, as it has acquired valuable patents in the deal. In order to payfor the purchase, the Japanese company said it is considering selling sharesof its Canada-based JDS Uniphase.
Corning, a world leading manufacturer and supplier of optical fiber, opticalcable and photonic components, says it intends to expand its presence in thegrowing Chinese telecommunications marketplace.
"The addition of these fiber and cable manufacturing assets is an importantelement of our regional growth strategy for China and Asia," said Corningpresident and CEO, John W. Loose. "With local fiber manufacturing capabilitywe will be able to gain stronger market access to Chinese cablers and enduser customers."
Furukawa will pay $2.525 billion, and Corning will pay $225 million in cash,and receive interests in two Chinese joint ventures. Corning's purchase ofthese interests is subject to the approvals of the other equity shareholdersof each joint venture and relevant governmental approvals.
Furukawa expects to become a major international player in the opticsindustry, as it has acquired valuable patents in the deal. In order to payfor the purchase, the Japanese company said it is considering selling sharesof its Canada-based JDS Uniphase.
Corning, a world leading manufacturer and supplier of optical fiber, opticalcable and photonic components, says it intends to expand its presence in thegrowing Chinese telecommunications marketplace.
"The addition of these fiber and cable manufacturing assets is an importantelement of our regional growth strategy for China and Asia," said Corningpresident and CEO, John W. Loose. "With local fiber manufacturing capabilitywe will be able to gain stronger market access to Chinese cablers and enduser customers."
Reads: 2003 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/corning725.cfm
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