July 16 (Bloomberg) -- 3M Co., the maker of Post-it notes, said it will acquire Sumitomo Electric Industries Ltd.’s 25 percent stake in a venture for 90 billion yen ($885 million).
After the acquisition, 3M will own all of Sumitomo 3M Ltd. and the transaction is expected to close Sept. 1, the St. Paul, Minnesota-based company said in a statement today. The deal will help Sumitomo to book a one-time gain of 44 billion yen in the second fiscal quarter on a consolidated basis, the Japanese company said in a statement to the Tokyo Stock exchange today.
“This investment allows us to gain full control of one of 3M’s most successful subsidiaries, said Inge Thulin, 3M chairman, president and chief executive officer in the statement. ‘‘It’s a strategic acquisition in a business we know well, as we have grown the business profitably for over 50 years.”
Sumitomo 3M was established in 1961 as a venture between 3M, Sumitomo Electric and NEC Corp. In 2003, 3M acquired NEC’s 25 percent stake, which increased 3M’s interest to 75 percent.
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