3M Issues $521 Million Stock Warrant to Amazon

3M expanded its commercial partnership with Amazon on Monday by issuing a warrant to an Amazon subsidiary. The agreement allows the subsidiary to purchase up to 3.16 million 3M common shares over the next seven years, a warrant valued at more than $521 million with shares priced at $164.89 each.

The vesting of these shares is primarily linked to Amazon's procurement of optical connectivity and other data-center products from 3M. Approximately 85 percent of the shares will vest as total purchases reach $6 billion, while the remaining 15 percent are tied to specific milestone-based conditions.

This strategic move occurs as technology companies ramp up spending on data-center infrastructure to support the growth of artificial intelligence and cloud computing. Following the announcement, 3M shares increased by more than 5 percent in extended trading.