Italian cable manufacture Prysmian Group has agreed to acquire Kentucky-based General Cable in a $3bn deal.

The transaction is expected to close by the third quarter of next year. It is subject to regulatory approvals and customary closing conditions including the approval of General Cable’s shareholders who represent a majority of the outstanding shares.

Prysmian claims that the combined group will have its presence in more than 50 countries with a workforce of 31,000 employees. 

Prysmian Group CEO Valerio Battista said: “The acquisition of General Cable represents a landmark moment for Prysmian Group and a strategic and unique opportunity to create value for our shareholders and customers.

“Through the combination of two of the premier companies in the cable industry we will be enhancing our position in the sector, by increasing our presence in North America and expanding our footprint in Europe and South America.”

The company plans to finance the transaction through a mix of new debt, cash on hand and existing credit lines. 

General Cable president and CEO Michael T. McDonnell said: “This combination is an ideal strategic fit and ensures we are well-positioned to meet the future opportunities and challenges in the dynamic and evolving wire and cable industry.

“Together, we will be able to deliver a robust portfolio of products and services and new product innovation across the full breadth of the wire and cable industry globally. Importantly, Prysmian and General Cable have a shared vision and highly compatible cultures founded on similar values.”

For the twelve months ended September 30, 2017, the combined group would have had sales of over €11bn.

Prysmian expects the combined entity to record run-rate pre-tax cost synergies of about €150m within five years.