Following several months of negotiations Bekaert has opted to withdraw from talks with Russian firm ZAO Uralkord regarding a possible takeover. The Russian manufacturer, located in the industrial city of Magnitogorsk, produces steel cord products for domestic tyre manufacturers and was viewed as a suitable vehicle through which the Belgian firm could strengthen its position in Russia. As recently as late July Bekaert CEO Bert De Graeve told media that the group was hopeful of closing a deal by the end of the year, adding that about 50 million euros had been offered for the purchase of Uralkord.

Despite this optimism, the deal fell through within three months of De Graeve’s announcement. The reason for this, Bekaert outlined in a statement, is that during “the course of the difficult and protracted negotiations, it became clear that no agreement could be reached with the current shareholders of ZAO Uralkord that would meet Bekaert’s criteria for pursuing its strategy of sustainable profitable growth in Russia.”