ArcelorMittal and Bekaert close steel wire deal in Brazil worth $62.4 million

26 June 2017

Bekaert Group and steelmaker ArcelorMittal closed a transaction to integrate Bekaert’s formerly wholly-owned steel cord subsidiary in the Brazilian city of Sumare into the Belgo Mineira Bekaert Artefatos de Arame (BMB) partnership, the companies announced.

ArcelorMittal has become the majority shareholder (55.5%) of the steel cord entity in Sumare and Bekaert retains the remaining shares (44.5%).

With the transaction, the companies “extend their partnership in Brazil with the purpose to leverage the operational scale and technological competences of the steel cord business in the country,” Bekaert said in a statement on its website.

“ArcelorMittal, through the agreement, increases its assets and operations in the tire cord segment (production of steel cord and bead wire, used in the manufacture of tires for cars and trucks). In addition, the operation allows the realization of synergies and guarantees the supply of quality wire rod by ArcelorMittal from its Joao Monlevade unit [in Minas Gerais state],” ArcelorMittal said.

Now the new company will be known as ArcelorMittal Bekaert Sumare Ltda.

The proceeds of the transaction amount to approximately Euro 56 million ($62.4 million), resulting in an estimated gain on disposal of Euro 38 million at current currency rates, which will be recognized in Bekaert’s consolidated statements for the first half of 2017, added Bekaert.

Source-platts