Prysmian confirms closing date of General Cable acquisition
Prysmian Group has set a date for completion of its acquisition of General Cable since being given clearance by the Committee on Foreign Investment in the US.
The $3 billion deal was announced back in December 2017 when the companies confirmed that Prysmian Group had entered into a definitive merger agreement to acquire 100% of the outstanding shares of General Cable at approximately $30.00 per share.
At the time Prysmian said that it expects the combined group to generate run-rate pre-tax synergies of approximately €150 million within five years after closing mostly 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 €220 million.
In March of this year the deal was approved by the US antitrust authorities. At the time the company 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, meaning that the deal had been cleared.
Since the clearance was the last of the regulatory approvals required for the transaction, a closing date of 6 June 2018 has now been given with previous dates set for Q3 2018. In addition, the deal was approved by stockholders of General Cable during a special meeting held for such purpose. The transaction is expected to be entirely funded with a mix of newly committed debt facilities and cash on balance / existing committed credit lines.
In May 2017, Prysmian won 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 cables.