Bekaert Chile Peru Steel Wire Divestment
Bekaertย reached an agreement to sell its Steel Wire Solutions businesses in Chile and Peru to its current partners. The deal carries an enterprise value of about $350 million and should generate roughly $136 million in net proceeds for Bekaertโs stake. The transaction remains subject to regulatory approvals and normal closing conditions, with closing expected in 2023.
These businesses manufacture, sell, and distribute steel wire products for construction, agricultural fencing, mining, and industrial uses. The sale covers Bekaertโs shares in Industrias Chilenas de AlambreโInchalam SA in Talcahuano and Prodalam SA in Santiago, together with their subsidiaries in Chile and Peru. Bekaert currently owns 52% of the Chilean entities and 38% of the Peruvian entities. However, the deal does not include the wholly owned BridonโBekaert ropes operations in either country.
Strategy Behind the Bekaert Chile Peru Steel Wire Divestment
Bekaert links this divestment to its broader portfolio strategy. The company wants less exposure to commoditized and more volatile steel wire markets and more exposure to fasterโgrowing, higherโmargin segments. These focus areas include new mobility, green energy projects, and lowโcarbon concrete solutions, which typically offer higher returns on capital.
In 2022, the activities being sold generated around โฌ650 million in consolidated revenue, but profit margins fell below Bekaertโs target range. The company plans to use the transaction proceeds to strengthen its balance sheet, support shareholder returns, and fund growth investments in its strategic markets.
Long Partnership and Future Direction
Bekaert entered the Latin American market early. Its partnership in Chile dates back to 1948, and it extended the relationship into Peru in 1994. The company describes this longโterm cooperation as successful, yet it now views this as the right moment to exit these specific wire businesses and sharpen its focus on target segments.
CEO Oswald Schmid said the sale marks another key step in Bekaertโs ongoing transformation. By divesting these units, Bekaert can accelerate its shift toward new, fastโgrowing markets, while its local partners continue to run and develop the steel wire operations in Chile and Peru.
