3M Co. (AA/Stable/A-1+) announced today it will acquire the 25% interest in Sumitomo 3M Ltd. now owned by NEC Corp. (--/--/A-3) for about $375 million. 3M's ownership stake in Sumitomo 3M Ltd., which it formed with NEC and SEI in Japan in 1961, will rise to 75% from 50% following the transaction, set to close on Jan. 8, 2003. Standard&Poor's Ratings Services said the acquisition would not affect its ratings or outlook on the company. 3M is expected to continue to generate significant levels of discretionary cash flow (after capital expenditures and common dividends). Discretionary cash flow exceeded $700 million for the first nine months of 2002, including 3M's $789 million cash pension contribution in the September 2002
