Jan 7 - An 870-million-euro ($1.14 billion) agreed takeover by Italian cablemaker Prysmian of smaller Dutch peer Draka got a major boost this week when rival Chinese bidder Xinmao Group dropped its plans for a higher cash bid.
If accepted by Draka shareholders, Prysmian's takeover will create the biggest global player in the fragmented cable and systems industry, overtaking leader Nexans of France.
Here is a snapshot of what a combined Prysmian/Draka will look like.
- Prysmian's takeover of Draka, currently the No.8 player globally, will create a leader with a combined world market share of roughly 10 percent, overtaking Nexans' share of around 7 percent.
- The combined group will have estimated net sales of around 6.7 billion euros based on pro-forma 2010 data, of which more then half will come from Europe, Africa and the Middle East. Nexans had sales of 4.6 billion euros in 2009 and Prysmian, now the world's No.2 player, of 3.7 billion euros.
- The new group will have pro-forma combined earnings before interest, tax and depreciation of 529 million euros.
- Prysmian's debt will rise to 1.266 billion euros after the acquisition of Draka, leading to a debt/EBITDA ratio of 2.4
- Prysmian forecasts annual synergies of 100 million euros within three years from the integration of Draka. Costs are expected to total 170 million euros, spread over three years.
- The combined group will have more than 20,000 staff, with operations across all five continents.
(Sources: Prysmian, analysts)
(Compiled by Lisa Jucca; editing by Alexander Smith)