Bekaert and ArcelorMittal close Sumaré deal
Bekaert and ArcelorMittal have integrated Bekaert’s formerly wholly-owned steel cord subsidiary in Sumaré (Brazil) into the BMB (Belgo Mineira Bekaert Artefatos de Arame Ltda) partnership.
In line with the shareholding structure of the BMB joint venture, ArcelorMittal has become the majority shareholder (55.5%) of the steel cord entity in Sumaré and Bekaert retains the remaining shares (44.5%).
With this transaction, Bekaert and ArcelorMittal extend their partnership in Brazil with the purpose to leverage the operational scale and technological competences of the steel cord business in the country, for the benefit of the customers.
The Sumaré plant accounted for an estimated 40 million euros in consolidated revenue over the first half of 2017, representing approximately 5.5 million euros in net result.
As of 1 July 2017, the entity – renamed ArcelorMittal Bekaert Sumaré Ltda – will be accounted for by Bekaert under the equity method: 44.5 per cent of the net result of the entity will then be represented as ‘share in the results of joint ventures and associates’.
The proceeds of the transaction amount to approximately 56 million euros ($62.4 million), resulting in an estimated gain on disposal of 38 million euros at current exchange rates, which will be recognized in Bekaert’s consolidated statements for the first half of 2017, added Bekaert.