Kamkabel and Electrocable: the urge to merge

Kamkabel and Electrocable, two major players, have decided to pool their assets and form a holding.. As a result, this transaction will create Russia’s largest cable production holding in terms of copper used (over 100,000 tn a year).

According to information released by Electrocable, for management purposes «either a management company will be set up to run the consolidated business or a single structure into which other additional assets could be folded at a later time». As news agencies wired, the parties to the transaction are currently in negotiations with some other players of the traditional cable market over consolidation.

In Antanta Capital’s view, the changes taking place in Russia’s cable industry, which is the least consolidated sector in the Russian economy, are extremely upbeat. We believe that merging into a holding will help the concern craft a single development strategy, raise development investments and outpace its rivals on external markets.