DoJ gives go-ahead for SDL buyout by JDS Uniphase

The US Department of Justice (DoJ) has given the green light to fibre optic component maker JDS Uniphase to acquire rival SDL for $17.6bn.

Under the terms of the acquisition as set out by the DoJ, JDS Uniphase has agreed to sell a Swiss-based laser manufacturing plant to Nortel Networks for $3bn in a stock and cash deal. The US DoJ had expressed concern that the combined might of JDS and SDL would sew up the market for lasers used to amplify signals on fibre-optic networks. JDS will receive $2.5bn in Nortel stock and $500m by 31 December 2003 if it fails to meet certain commercial agreements. The deal marks the latest stage in JDS' strategy to consolidate the fibre optic market. Last year, the company bought rivals Optical Coating Laboratory and E-tek Dynamics.