Nexans to partner with Shandong Yanggu Cable in China
French cable maker Nexans said on Tuesday it was strengthening its position in China by taking a 75 percent stake in a joint venture based on the power cable business of Shandong Yanggu Cable.
The transaction would value the new business on a debt and cash free basis at approximately 140 million euros ($200 million) and should be completed in six to eight months, provided it receives Chinese regulatory approval, Nexans said in a statement.
Shandong Yanggu Cable is one of China's leading power cable manufacturers and supplies the state grid network among other clients.
"China is the largest, fastest growing market for energy infrastructure in the world," Nexans chief executive Frederic Vincent said in a statement.
"This investment reinforces our presence in this exciting market and is consistent with our long term strategy to grow in emerging markets."
Shandong Yanggu chief executive Li Ming Suo said the joint venture with Nexans will reinforce their position in the markets and expressed confidence it will develop into "one of the most significant cable manufacturers in China and in Asia."
© 2011 AFP