ArcelorMittal, Bekaert to swap stakes in Latin America wire ventures

Screen Shot 2014-05-01 at 10.26.34 AMlgo_bekaert

As Reuters reports from Sao Paulo, Brazil, ArcelorMittal SA, the world’s largest steelmaker, and Bekaert Group on Wednesday agreed to swap their stakes in their Brazil, Costa Rica and Ecuador ventures, part of a broader plan to extend a four-decade partnership in fast-growing markets, an executive said.

Under terms of the plan, ArcelorMittal will transfer its 55 per cent stake in a rope-producing venture to Bekaert, allowing the latter to control all of Bekaert Cimaf Cabos Ltda in exchange for steady supply of wire, said Augusto Espeschit, president of Belgo Bekaert Arames – the Brazil-based venture between Bekaert and ArcelorMittal known as BBA.

In addition, ArcelorMittal will have a minority shareholding in Bekaert-controlled wire producer Ideal Alambrec in Ecuador, taking advantage of rapid expansion in the country’s civil construction sector, he added. Continue reading