Belgium-based steel cord and wire manufacturer Bekaert SA has announced the signing of an MoU with its partners in Ecuador for the establishment of a holding company covering businesses in the northern part of Latin America in which Bekaert has shareholdings.
According to the MoU, Bekaert will become the principal shareholder in this holding company with 80 percent, whereas the remaining 20 percent will be owned by the partners.
Until now, Bekaert accounted for its stakes in the Ideal Alambrec and Prodac joint ventures using the equity method. As from 2009, the companies in question will become subsidiaries and therefore will be fully consolidated by Bekaert.
Bekaert and its partners anticipate closing the transaction by early 2009.