Global Crossing, the telecoms giant constructing the high-speed, high-capacity link connecting Ireland to Europe and the US, will acquire Racal Telecom, a unit of the British defence electronics firm Racal electronics, for $1.65 billion (€1.5 billion).

According to Global's chief executive, Mr George Annunziata, Racal Telecom's extensive network would add to Global's existing British operations and for thcoming pan-European network, and represent an exceptional opportunity to accelerate Global Crossing's development of the world's first global independent telecommunication company.

A Global Crossing statement said that the deal would give it a platform from which to target multinational companies in Britain and elsewhere while adding that Racal Telecom had lately been developing a range of products geared to corporate needs.

Global Crossing owns and operates a fibre optic network in the United States and through its subsidiary, Global Crossing Marine, owns the world's largest fleet of cable-laying and maintenance vessels.