This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (December 12, 2017).
Corning Inc. said Monday it agreed to buy almost all of 3M Co.'s optical fiber and copper cable business for $900 million in cash.
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3M's communications markets division, which is based in Austin, Texas, generates about $400 million a year in sales, the company said. About 500 3M employees will join Corning as part of the deal, which is expected to be completed in 2018.
"After completing a thorough strategic review, we believe that this business will be well positioned with Corning," Ashish Khandpur, 3M's executive vice president for its electronics and energy business group, said in prepared remarks.
The deal will add to Corning's 2019 per-share earnings by between 7 cents and 9 cents, it said. 3M said it expects to realize a gain of 40 cents a share from the divestiture.
Corning said it plans to spend between $1 billion and $3 billion on acquisitions as part of its multiyear capital-allocation plan.
Shares in Corning rose 0.7% Monday morning, while shares of 3M rose 0.2%.
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(END) Dow Jones Newswires
December 12, 2017 02:47 ET (07:47 GMT)