Pirelli has sold its energy and telecomms cables and systems business to the private equity arm of Goldman Sachs for 1.3 billion Euros including debt.

The sale was first mooted over three years ago but then shelved due to unfavourable market conditions. However, the firm redoubled its efforts recently and the sale will allow Pirelli to reinvest the net proceeds in strategic activities within the group.

Pirelli will now focus on higher value-added businesses including telecommunications, broadband and second generation photonics, tyres and real estate.

The transaction is subject to final approval from regulatory and government bodies.

Source

Electrical and Mechanical Contractor