Samsung sells fiber-optic business to Corning
Samsung supplies fiber and cable in South Korea, China, and Southeast Asia. Corning expects the acquisition will strengthen its hand in these markets.
Corning (NYSE: GLW) and Samsung Electronics Co., Ltd. have reached a definitive agreement through which Corning will acquire Samsung's optical fiber and fiber-optic cable business. The terms of the agreement were not released.
Samsung supplies fiber and cable in South Korea, China, and Southeast Asia. Corning expects the acquisition will strengthen its hand in these markets. The acquisition is expected to be completed by the end of the first quarter of 2015, subject to customary closing conditions, including receipt of regulatory approvals.
In addition to the various product lines, Corning also will buy Samsung's fiber-optic manufacturing facilities in Gumi, South Korea, and Hainan, China. The facilities will become part of the Corning Optical Communications business segment upon consummation of the deal.
"We are very excited about the growth opportunities in Korea and the emerging economies in Southeast Asia," said Clark S. Kinlin, executive vice president, Corning Optical Communications. "Once we are joined by Samsung Electronics' experienced workforce, I look forward to the team building out Corning's global scale and scope to better meet customer needs for innovative fiber-optic solutions."