Paris, France, Nov. 27, 2007 — Nexans announced the signature of a framework agreement to acquire the cable business of Madeco. The closing of the acquisition is expected in the third quarter of 2008. Payment will consist of 2.5 million newly-issued shares of Nexans and $422 million in cash and assumption of debt after taking into account minority interests.
Madeco will get a stake in Nexans of approximately 9 percent, which it committed to hold for a minimum period of 12 months from the closing date. Nexans’ board of directors will call an extraordinary general shareholders’ meeting early in 2008 for the approval of a shares issuance and the election of a Madeco Group representative as director.
The closing of this transaction is subject to approval of Madeco’s and Nexans’ shareholders as well as relevant regulatory authorities.
At current non-ferrous metal prices, the 2006 sales of the Madeco Group cable business totaled $672 million, in three major segments: cables for infrastructures, industry and building. The organic volume growth for these segments was 12% per year during the 2004-2006 period. For the 2007 half-year, Madeco’s wire and cable sales breakdown by country was approximately 43 percent in Brazil, the largest market in South America; 28 percent in Chile; 18 percent in Peru; 6 percent in Argentina; and 5 percent in Colombia.
Want to stay Current? Listen to Currents: The Energy News Podcast brought to you by Utility Automation & Engineering T&D and Electric Light & Power online. For a list of all available episodes, click here and start listening today. And for more news and exclusive features from Utility Automation & Engineering T&D and Electric Light & Power online, please click here.