Cable solutions provider Nexans has acquired a controlling 75% stake in the Shandong Yanggu New Rihui joint venture. The remaining 25% stake in the joint venture will be held by Shandong Yanggu Cable Group.
Completing the acquisition follows an agreement between the two companies in June 2011 to create a new joint venture based on Shandong Yanggu’s power cable business in the country.
With this acquisition, Nexans is expected to expand its strategic footprint in the rapidly growing Chinese energy infrastructure market. Nexans chairman and CEO Frédéric Vincent said, “This investment reinforces our presence in this exciting market and is consistent with our long term strategy to grow in emerging markets.”
The transaction values the business at about 1240 million yuan (€156 million).
