12 March 2018
| James Pearce
Prysmian Group has received effective clearance from the US antitrust authorities to buy rival General Cable in a deal worth approximately $3 billion.
The cable maker announced last month that it had reached a
definitive merger agreement under which it will buy 100% of
outstanding shares of general cable, subject to regulatory
In this latest development, he firm said that the waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act
applicable to the proposed acquisition of General Cable
Corporation expired on March 7, 2018. This means the
transaction has been cleared for US antitrust purposes.
The deal now requires further approvals and customary
conditions, with Prysmian initially saying it expects to seal
the takeover by Q3 2018.
The combined company brings together complementary
geographical footprints, which includes increasing the exposure
of Prysmian Group to North America. In May, Prysmian Group was
awarded a three-year $300 million optical cable supply contract
from Verizon Communications, which will see the Group supply
more than 17 million fibre km of ribbon and loose tube
"The acquisition of General Cable represents a landmark
moment for Prysmian Group and a strategic and unique
opportunity to create value for our shareholders and
customers," said Valerio Battista, Prysmian Group CEO said at
the time of the original announcement in December.
"Through the combination of two of the premier companies in
the cable industry we will be enhancing our position in the
sector, by increasing our presence in North America and
expanding our footprint in Europe and South America."
Prysmian Group inaugurated a new optical cable plant in
Slatina, Romania, back in June which, as part of a three-year
€250 investment plan, the company claims is "the largest
of its kind in Europe".
Prysmian expects the combined group to generate run-rate
pre-tax cost synergies of approximately €150 million
within five years following closing mainly from procurement,
overhead costs savings and manufacturing footprint
optimisation, "with a substantial proportion coming in the
first three years," said Battista in a recent conference call.
One-off integration costs are estimated at approximately
The combined group will be present in more than 50 countries
with approximately 31,000 employees.
mergers and acquisitions,