NEC Corporation and Sumitomo Electric Industries will acquire about 75 percent and 25 percent respectively of OCC Holdings, which includes its subsidiary OCC Corporation.

Established in 1935, OCC Corporation manufactures fiber optic submarine cables for telecommunications. NEC and Sumitomo expect the acquisition to be completed in July 2008.

Catering for broadband expansion

"In response to rapidly expanding global demand for broadband capacity, a broad range of new submarine cable systems is being planned and built," says Masamichi Imai, executive general manager of NEC's Broadband Networks Operations Unit. "The acquisition represents a strategic advancement for NEC and Sumitomo Electric."

NEC is a leading internet, broadband network and enterprise business solutions provider. Sumitomo Electric designs, manufactures, and sells electric cables, optical fibers and components, advanced electronic devices, automotive parts, cemented carbide tools and special steel wires.