Nexans SA announced that it has entered into a share purchase agreement with Reka Industrial Plc to acquire Reka Cables for €53 million.

A press release said that the acquisition of the Finnish company will strengthen Nexans’ position in the Nordics, notably in electricity distribution and usages. Founded in 1961, Reka Cables has some 270 employees that manufacture low- and medium-voltages cables.

Reka Cables operates in four countries and was said to have expected 2022 revenues exceeding €160 million. The deal, pending approvals, is expected to be concluded in the first half of 2023. In November 2021, it became one of the first cable manufacturers to become carbon neutral per Scope 1 and Scope 2.

“With a deep commitment to energy transition and carbon neutrality, Reka Cables is fully aligned with the Group’s strategic ambition to become a pure electrification player committed to contribute to carbon neutrality by 2030,” said Nexans CEO Christopher Guérin.

“As a global player in electrification and an active promoter of the energy transition, Nexans is a great fit for Reka Cables,” said Reka Cables CEO Jukka Poutanen.

In August, Sandvik Materials Technology separated from the Sandvik Group, was renamed Alleima™ and is now listed on the Nasdaq Stockholm Exchange as ALLEI.
Per an announcement from the company, “The name Alleima—a combination of the words alloy and materials—represents a fresh opportunity for growth and development in the global market. The Tube division represents nearly 70% of Alleima’s business, but it also makes long products, such as medical wire.

“While we are leaders in the stainless and special alloy sector in terms of both technology leadership and financial performance, we were a relatively small part of the Sandvik Group,” Alleima Company President Göran Björkman said. “As an independent company, the Alleima Board of Directors is fully focused on our activities, enabling us to deliver our strategy to grow profitably, and capital allocation will be much simpler. This move has energized our entire organization and instilled a strong sense of pride.”

Björkman said that the separation has not caused major changes for the company, customers or employees. There have been no changes in production or support service processes. Alleima continues to control the supply chain from R&D to primary melt to the final product, and there will be no changes or reductions in the product portfolio.

Earlier this year, Mexico’s Xignux SA completed the sale of Centelsa, a cable producer in Latin America, to Nexans SA.

A press release said that Centelsa, which manufactures cables for energy and communications, has been part of the industry since 1955. The company was three plants in Cali, Colombia, and a distribution center in Ecuador. Those operations will bolster the presence of Nexans in Latin America, where the company has four industrial plants in Colombia, Peru, Chile and Brazil.

Commented Sergio Valdés, general director of Viakable, a Xignux company, “In our history together with the Centelsa team we have achieved great achievements. ... I am convinced that, together with Nexans, the Centelsa team will continue to be a key player in the industry, offering growth to its collaborators and clients.”