Prysmian finds sparky US fix for dim cable outlook

Encore Wire

15/04/2024 11:16

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Lisa Jucca
       MILAN, April 15 (Reuters Breakingviews) - The world’s
biggest maker of telco and power lines is buying a cash-rich US
rival. At $4 bln, the deal is not cheap, and heavy investment in
grids has slowed. Still, adding heft to the more
attractive North America market should improve the $13
bln Italian company’s prospects.
    Full view will be published shortly.
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    CONTEXT NEWS
    Italy’s Prysmian, the world’s biggest maker of power lines
and other cables, on April 15 agreed to buy smaller U.S. rival
Encore Wire for $290 a share, valuing the company at about 3.9
billion euros ($4.2 billion).
    Prysmian expects the deal to yield annual synergies of
around 140 million euros four years after closing the deal.
    Shares in Prysmian hit an all-time record following the deal
and were up 6% at 51.6 euros at 0945 GMT on April 15.

 (Editing by Aimee Donnellan and Oliver Taslic)
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