3M (MMM) announced that it has entered into agreements related to the sale of substantially all of its Communication Markets Division to Corning Incorporated (GLW), for $900M, subject to closing and other adjustments.

This business consists of optical fiber and copper passive connectivity solutions for the telecommunications industry including 3M's xDSL, FTTx, and structured cabling solutions and, in certain countries, telecommunications system integration services. This business has annual global sales of approximately $400M. "After completing a thorough strategic review, we believe that this business will be well positioned with Corning," said Ashish Khandpur, EVP, Electronics & Energy Business Group.

The sale, which is subject to consultation or information requirements with relevant works councils and to customary closing conditions and regulatory approvals, is expected to be completed in 2018. Approximately 500 3M employees are expected to join Corning upon completion of the transaction. 3M expects to realize a gain of approximately 40c per share from this transaction, net of actions related to the divestiture. Goldman Sachs & Co. LLC acted as the exclusive financial advisor to 3M.