Two of the world’s largest wire rope manufacturers – Bridon and Bekaert – have announced plans to merge.
Bekaert and Bridon’s owner Ontario Teachers’ Pension Plan (OTPP), have reached an agreement to establish Bridon Bekaert Ropes Group, with Bekaert holding a 67 share in the business and OTPP the remainder.
The new business is predicted to generate around 600 million Euro in business annually.
“The new group will combine the ropes and advanced cords capabilities of almost 3 000 employees, 19 manufacturing entities across 11 countries, market-focused R&D, and a global sales and service network,” Bekaert explained.
“The intended combination will leverage the scale and complementary strengths of Bekaert and Bridon and will pursue value creation for customers and for the new group.
“Bekaert is contributing its advanced cords business and a well-established ropes presence in Latin America, Canada and Australia.”
The merger will also look at new growth opportunities in Asia, Bridon stated.
The transaction will have a cash-neutral impact on the two businesses, with the agreement set to be finalised in the first half of next year, however until that point the two businesses will continue to operate separately.