NEC Corporation and Sumitomo Electric Industries, Ltd. today announced the acquisition of OCC Holdings and its subsidiary OCC Corporation, which manufactures fiber optic submarine cables of exceptional quality and reliability.
NEC and Sumitomo Electric will acquire 100% ownership of OCC Holdings, the parent company of OCC Corporation, from investment fund managed by the Longreach Group. NEC will hold approximately 75% and Sumitomo Electric will hold approximately 25% of OCC Holdings. The acquisition is scheduled to be completed in July 2008.
"The need for broadband capacity is rapidly expanding on a global scale. In order to accommodate the growing worldwide demand, a broad range of new submarine cable systems are being planned and built. This acquisition represents a strategic advancement for NEC, one of the leading suppliers of submarine cable systems, and Sumitomo Electric, a leading supplier of optical products, that secures stable access to a rich source of high quality; highly reliable optical submarine cables. NEC is pleased to announce the acquisition of OCC, which assures the company of maintaining a dynamic leading presence in undersea industries, and promises to solidify each company's market position," said Mr. Masamichi Imai, Executive General Manager of Broadband Networks Operations Unit of NEC Corporation.
"With the acquisition of OCC today by NEC and Sumitomo Electric, we aim to firmly establish our presence in the market of optical components and materials for the submarine fiber-optic network construction industry that is forecast to grow," said Dr. Shigeru Tanaka, Managing Director of Sumitomo Electric Industries, Ltd.