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Japan,United States : 3M COMPANY to acquire the remaining 25% stake of SUMITOMO for ¥90 billion [TendersInfo (India)](TendersInfo (India) Via Acquire Media NewsEdge) 3M Company is set to acquire the remaining 25% stake of Sumitomo 3M Ltd. for ¥90 billion ($885 million). The transaction will make 3M a 100% stake owner in Sumitomo 3M Ltd. Sumitomo 3M Ltd. was a joint venture between 3M, Sumitomo Electric and NEC Corp. In 2003, 3M acquired NEC's stake, obtaining 75% stake in the venture. The cash buyout will take its stake to 100%, allowing the conglomerate to take control over one of its most successful subsidiaries. Sumitomo Electric is a leading electric wire and optical cable maker. The company, after incorporating the impact of its sale to 3M, increased the group s net profit outlook to ¥111 billion from ¥70 billion. 3M expects the acquisition to be accretive to its earnings by 8 cents per share, during the 12 months following the closing of the transaction. The investment will allow 3M to build on its lucrative, stable presence in Japan as it deploys additional capital for its subsidiary. (c) 2014 Euclid Infotech Pvt. Ltd. Provided by SyndiGate Media Inc. (Syndigate.info). |