NTT strengthens links with NEC as it acquires a 4.8% stake

25 Jun 2020

Japan’s Nippon Telegraph and Telephone Corporation (NTT Corp) is to acquire a stake of almost 5% in equipment vendor NEC as the two firms look to jointly develop 5G and fibre technologies. The telco is paying around JPY64.4 billion (USD603 million) to acquire 4.8% of NEC’s common stock ‘through the issuance of new shares and disposition of treasury stock by way of third-party allotment’. The two companies say they will be working closely together to create a business alliance ‘for the purpose of joint research and development and the global rollout of ICT products utilising innovative optical and wireless technologies’. A statement from NTT adds that the pair will look to collaborate to form a sales network to deliver products to the global market.

Japan, NEC, Nippon Telegraph and Telephone Corporation (NTT Corp)