Industry News

The three major European cable companies bid for U.S. general-purpose cables to target the North American market

2021-05-13 管理员 Read 62

[Cable Net News] According to the latest news from Reuters, American cable manufacturer General Cable has received preliminary acquisition offers from European competitors Prysmian, Nexans and Ankert. Reuters quoted two people familiar with the matter as saying that General Cable is trying to find new buyers, and major European competitors Prysmian, Nexans and Anker have all provided preliminary offers. According to reports, all three European cable manufacturers are vying for the North American market. The general cable market, headquartered in Kentucky, is valued at nearly $1 billion and specializes in the production of copper cables, aluminum cables and optical fiber wire and cable products. In July, General Cable hired JPMorgan Chase to begin a strategic review and identify possible merger partners to promote growth and maximize shareholder value. The source said that at least five companies participated in the bidding, and bidders are now waiting whether they have entered the second round of auctions. Southwire, an American wire manufacturer, has acquired some assets from General Cable in the past few years and may be a strong contender for this bid. However, it will face fierce competition from Prysmian, the world's largest cable manufacturer from Milan. As of press time, Prysmian declined to comment, and General Cable, Nexans, Ankete and Southern Cable also declined to comment. However, Valerio Battista, president of Prysmian, said in July that the acquisition of General Cable will help accelerate industry integration, and Prysmian hopes to participate in industry integration without overspending. In 2016, Prysmian’s operating income rose by 2.8% to 7.57 billion euros. Prysmian has long been committed to overseas mergers and acquisitions because it hopes to maintain its advantage over its main competitor, Nexans, and North America is the most important growth strategic market. As early as 2010, Prysmian and Nexans had a fierce acquisition competition. At that time they tried to take over the Dutch company Draka. In the end, Prysmian acquired Draka at a price of 1.15 billion euros, and has since become the world's largest cable manufacturer. In recent years, Prysmian has also been acquiring small and medium-sized cable companies in order to gain benefits in the fragmented market.