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UPDATE 1-Corning to buy 3M's communication markets unit for $900 mln

(Adds details on the deal)

Dec 11 (Reuters) - Gorilla Glass maker Corning Inc said on Monday it would buy substantially all of 3M Co's communication markets business for about $900 million in cash.

3M's unit provides optical fiber and copper passive connectivity solutions for the telecommunications industry and has annual global sales of about $400 million.

The deal is part of New-York-based Corning's plan to invest$1 billion-$3 billion in acquisitions, Corning said.

The Austin-based unit will be part of Corning's optical communications business, which makes optical fiber products and accounted for more than a third of Corning's sales in the recently reported third quarter.

Corning expects the deal, set to close next year, to add earnings per share of 7 cents-9 cents.

About 500 3M employees would join Corning after the deal and 3M expects to realize a gain of about 40 cents per share.

Goldman Sachs was the exclusive financial adviser to 3M.

Shares in both Corning and 3M were little changed in early trading on Monday.

(Reporting by Arunima Banerjee in Bengaluru; Editing by Martina D'Couto)