3M Co. (NYSE:MMM) said it plans to sell of "substantially all" of its communication markets division for US$900mln to Corning Inc. (NYSE:GLE).
In a statement, the company said it stands to gain 40 US cents a share from the sale, which is expected to close in 2018.
The diversified group said about 500 of its employees are expected to join Corning when the deal is completed.
The business, which had annual sales of about US$400mln, provides optical fiber and copper passive connectivity solutions for the telecommunications industry.
Division to be part of Corning's optical communications business
The deal is part of the New York-based Corning’s plan to invest between US$1bn to US$3bn in acquisitions.
The communications markets division will become part of Corning’s optical communications business.
Corning expects the deal to add earnings per share of 7 to 9 US cents per share.
In early trade, 3M shares were up 0.55% at US$239.45 while Corning was also up 1.08% at US$32.70.