Basque companies go on a buying spree in July: Euskaltel, Tubacex, Elkar and Esegui
29/07/2015
Diego Gutiérrez
Basque companies go on a buying spree in July: Euskaltel, Tubacex, Elkar and Esegui
In recent weeks, several Basque companies have bought companies in their sectors with the aim of increasing their market share and reaching new geographical markets. Tubacex, for example, has become the world leader in its sector after buying the seamless steel tube division of the Indian company Prakash Steelage.

Euskaltel to buy R Cable

Euskaltel will buy the 100% from its rival  R Cable which was in the hands of the CVC fund and the Galician bank Abanca for €1,155m. The acquisition will give Euskaltel a potential customer base of five million people.

Although the details of the agreement are not yet known, it is known that CVC and Abanca will receive part of those 1,155 million (70 % the British fund and the other 30 % the Galician entity) mostly in cash and another part in securities of the firm resulting from the merger.

Euskaltel, which provides network access to 85 % of households in the Basque Country, has been listed on the stock exchange for less than a month, where it made its debut on 1 July. On its debut on the stock exchange, it gained 5.79%.

 Tubacex buys India's Prakash Steelage

Tubacex, the seamless tube company located in Laudio, has purchased the 68% seamless stainless steel tube division from Indian company Prakash Steelage and an option to purchase 32%. This makes it the world's largest manufacturer of seamless stainless steel tubes.

The acquisition strengthens the group's presence in key markets and expands its customer base in markets in North America, South East Asia, Africa, the Middle East and Europe.

"Tubacex is carrying out a strategic plan based on growth, having already bought Italian IBF in January for €29.7M to complete its product range, increase its presence in the oil, gas and energy sectors, and increase its presence in the Asian market," says Diego Guiterrez of Tubacex. abra-Invest.

Elkar buys Uppali

The Basque group Elkar, the leading Basque-language publishing company, has acquired the 50% from Uppalithe franchise business created in August 2013 by the Catalan cooperative Abacus, leader in Catalonia in the distribution of books and educational material.

This agreement will accelerate the franchise's implementation throughout Spain and increase its logistical and purchasing capacity.

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