September 08, 2008

NEC and Sumitomo Electric to acquire OCC

Japan's largest maker of personal computers NEC and Sumitomo Electric Industries announced that they will acquire leading Japanese submarine optical cable maker OCC Corp to meet growing demand for submarine cable systems.

NEC spokesman, said that NEC will acquire 75% and Sumitomo Electric which makes electrical cables and optical fibers, will buy the remainder from investment company Longreach Group, Makoto Miyakawa.

The purchase will cost Tokyo based NEC and Osaka based Sumitomo Electric as much as JPY 9 billion (USD 85 million).

OCC has about 20% of the global market for undersea cables.