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BEKAERT CONSOLIDATES ACTIVITY IN LATIN AMERICA |
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Belgian wire making Member NV Bekaert SA has signed a memorandum of understanding with its partners in Ecuador, to establish a holding company covering the businesses in the northern part of Latin America, with Bekaert becoming the principal shareholder in the holding company.
Bekaert and its Ecuadorean partners intend to merge their interests in: Vicson, S.A. in Venezuela (currently 100% owned by Bekaert); Productora de Alambres Colombianos Proalco S.A. (Proalco) in Colombia (currently 87.5% shareholding by Bekaert and 12.5% by the Partner); Ideal Alambrec S.A. in Ecuador (currently a 50/50 joint venture between Bekaert and the Partner); and Productos de Acero Cassadó S.A. (Prodac) in Peru (currently a 39.9% investment held 50/50 by Bekaert and the Partner). The merger will be effected by the establishment of a holding company in which the parties agreed that 80% of the shares involved will be held by Bekaert and the remaining 20% by the Partner. Bert De Graeve, Chief Executive Officer of Bekaert, stated: “Latin America is a growth market for Bekaert which is in full development. This agreement allows us to strengthen our strategic positions and to join the common interests of our operations in the region.” Tomas Kohn Topfer, Chairman of the Board of Directors of Ideal Alambrec, commented: “We have come to an agreement with Bekaert, our partner for over 35 years, to manage all the wire operations in the related region by means of a holding entity which will provide more opportunities, efficiency and flexibility in our companies, as well as a stronger platform for future growth.” |
