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Sumitomo Electric Industries, Ltd. has reached an agreement with Nexans S.A. to collaborate in optical fiber cable business for terrestrial telecommunications in Europe. This agreement concerns more specifically the deployment of Fiber-To-The-Home (FTTH) network. In the framework of this agreement, Sumitomo Electric has entered into a joint venture agreement with Nexans to acquire 40% of the shares in Opticable S.A., a wholly-owned subsidiary of Nexans, based in Belgium, which designs, manufactures and markets terrestrial optical fiber cables to various telecom operators in the European region. The transaction is subject to the approval of antitrust authorities and is expected to close by early 2009.
Nexans, headquartered in Paris, France, offers an extensive range of cables and cabling systems and develops solutions for energy, telecom and transport networks. The group is also committed to providing enhanced solutions for all FTTx applications.
Through investing in the Nexans subsidiary of Opticable, Sumitomo Electric will join Nexans in enhancing the joint activity of both companies in the growing European FTTH market. The synergies of Nexans’ cable manufacturing facilities, engineering competencies and its sales channels, combined with Sumitomo Electric’s optical fiber and FTTH technology are expected to bring added value to the European FTTH market.
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