Cables de Comunicaciones also exports around 40 percent of its production capacity to the UK, other European Community countries, the Middle East as well as to South America.
The deal is subject to formal approval by the South African exchange control authorities and the Spanish competition board.
The Chief Executive of Powertech, Robbie Venter, says, "This acquisition is a major step in Powertech's globalisation strategy aimed at reducing dependence on the Southern African region. Cables de Comunicaciones complements the activities of our Aberdare Cable group and we will now be in a position to further develop our already strong drive into the European and other world markets. Exports and foreign operations will now account for approximately 30 percent of Powertech's annual turnover."
Following the acquisition, agreement has been reached with management of Cables de Comunicaciones whereby they will acquire a minority shareholding of approximately 25 percent.
Venter says, "The company has strong and competent management and we are confident that the joint venture with management will enable the company to not only maintain its dominant position in the Iberian Peninsula, but also further develop new export markets for its existing products as well as identified new products and services."
