Belgian steel cord and wire manufacturer Bekaert has announced that it has finalized the sale of its steel wire businesses in Costa Rica, Ecuador and Venezuela to Mexico-based Grupo AG for $73 million, having received all necessary regulatory approvals. The companies had reached an agreement for the sale back in late February this year, following Bekaert’s decision to restructure its business by reducing its presence in more volatile markets and increasing its position in faster growing markets.
As part of the transaction, Bekaert transferred its shares in BIA Alambres Costa Rica S.A. in Costa Rica, Ideal Alambrec S.A. in Ecuador, and Vicson S.A. in Venezuela, along with their subsidiaries, to Grupo AG. These companies produce and sell steel wire products primarily for construction, mining, agricultural and industrial sectors.
The sale will further strengthen Bekaert’s balance sheet and support its investment plans for growth.
