Belgian steel cord and wire manufacturer Bekaert has announced that it has signed an agreement with Mexico-based Grupo AG for the sale of its steel wire businesses in Costa Rica, Ecuador and Venezuela for about $73 million.
Expected to be completed in the third quarter of this year, the transaction includes Bekaert’s 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 these companies’ subsidiaries. These companies produce and sell steel wire products mainly for construction, mining, agricultural and industrial sectors.
Bekaert explained that the reason behind the decision was the restructuring of its business by reducing its presence in more volatile markets, while increasing its position in faster growing markets, which offer higher profit margins. By divesting its steel wire business in Latin America, the company will be able to focus on its target segments.