CORPORATE NEWS:
Alcatel and Draka to create a world leader in optical fibre and communication cables
Alcatel, France, and Draka, The Netherlands, have recently announced their intention to combine their global optical fibre and communication cable businesses into a jointly owned company. It is agreed that Draka will own 50.1% of the new company and Alcatel 49.9%. In fibre and fibre cables, the combination will be the undisputed number one in China, through the combination of Alcatel’s assets with Draka’s interest in YOFC, the leading Chinese optical fibre and fibre cable manufacturer. The new company will also be a leader in Europe and a major player in North America.
Alcatel should contribute all its optical fibre and fibre cable assets to the new company, which would be accounted for as an equity company. “With this announcement, we are making another important step in our strategy to focus on communication solutions. As part of this strategy, Alcatel is playing an active role in fostering the necessary consolidation of the fibre and fibre cable industry. This proposed transaction will allow Alcatel to benefit from an improved fibre cable capability in its FTTH activity, thereby further strengthening its leading offering in broadband access. The proposed combination of Alcatel’s and Draka’s assets will also generate substantial technical and industrial synergies”, commented Mr Olivier Houssin, executive vice-president of Alcatel.
The new company will feature a comprehensive product portfolio across fibre and fibre cable, addressing the full range of telecommunication and data communication applications. The new company's product portfolio will also include a comprehensive copper telecommunication and data communication cable product range. Alcatel would bring fibres and fibre cables, including TeraLight™, the advanced long-distance fibre, enhanced single-mode fibres and optical cables. These products use Alcatel’s proprietary, cost-effective Advanced Plasma Vapour Deposition process and draw colouring ColorLock™ process. Draka will bring complementary optical fibre activities to the combination, as well as communications-related, copper-based cables. Among the major features, Draka will bring its versatile proprietary Plasma Chemical Vapour Deposition process, as well as a top-notch LAN/Premise fibre solution, led by the MaxCap™ product family and JETnet™ networking systems.
The proposed combination, which has already received approval from Alcatel’s Board of Directors and from Draka’s Supervisory Board and Board of Management, is subject to confirmatory due diligence, agreement on final legal documentation, and customary regulatory and other approvals. It is expected to be completed by the end of the second quarter of 2004.
Draka Holding N.V - Zwaanstraat 1 - P.O. Box 1442 - NL-5651 CA Eindhoven - The Netherlands
Fax: Int’l +31 40 295 87 10
E-mail: [email protected]
Website: www.drakafibre.com
Company: |
Alcatel |
Country: |
France |
Fax: |
+33 1 47 56 69 24 |
Email: |
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Website: |
www.alcatel.com |