Summary
Corning Incorporated (GLW) has announced the completion of its acquisition of Lucent Technologies' interests in two Chinese joint ventures: Lucent Technologies Shanghai Fiber Optic Co. Ltd. and Lucent Technologies Beijing Fiber Optic Cable Co., Ltd. This transaction, originally announced in July 2001 and closing on September 30, 2002, represents a strategic move by Corning to further consolidate its position in the optical fiber and cable market in China. The total purchase price is up to $225 million, comprising approximately $50 million in Corning common stock and a potential future cash payment of $25 million contingent on the ventures meeting specific business objectives.
Key Highlights
- 1Corning completed the purchase of Lucent Technologies' interests in two China-based joint ventures.
- 2The acquired entities are Lucent Technologies Shanghai Fiber Optic Co. Ltd. and Lucent Technologies Beijing Fiber Optic Cable Co., Ltd.
- 3The transaction's closing date was September 30, 2002.
- 4The total purchase price is up to $225 million.
- 5The purchase price includes approximately $50 million in Corning common stock.
- 6A future cash payment of $25 million is contingent upon the ventures achieving certain business milestones.
- 7This acquisition is part of Corning's strategy in the optical fiber and cable sector.
Frequently Asked Questions
Corning acquired Lucent Technologies' interests in two joint ventures located in China: Lucent Technologies Shanghai Fiber Optic Co. Ltd., which manufactures optical fiber, and Lucent Technologies Beijing Fiber Optic Cable Co., Ltd., which manufactures fiber cable.
The total consideration is up to $225 million. This includes Corning common stock valued at approximately $50 million and a potential future cash payment of $25 million, which is dependent on the ventures achieving certain business milestones.
The transaction officially closed on September 30, 2002.
This acquisition allows Corning to further strengthen its presence and control in the Chinese optical fiber and cable market, integrating key manufacturing and operational assets into its global business.