ArcelorMittal has agreed to acquire 28.4% of French tubing producer Vallourec for approximately €955 million ($1.09 billion), Kallanish learns from a press release issued by the Luxembourg-based steelmaking giant late Tuesday.
ArcelorMittal will purchase 65.2 million Vallourec shares for €14.64/share from funds managed by Apollo Global Management. The parties expect to close the transaction in the second half of 2024, pending regulatory approvals.
ArcelorMittal ceo Aditya Mittal calls Vallourec “a quality, high added-value tubular business, with established positions of strength in the attractive Brazilian and US markets.”
Vallourec provides premium tubular goods for energy, automotive and construction. The statement says 85% of Vallourec’s 2.2 million tonnes of annual rolling capacity is focused around low-carbon, integrated production hubs.
“It has a critical role to play in the energy transition, producing vital products for hydrogen, [carbon capture] and geothermal applications, for which demand is expected to grow,” Mittal adds. “It also has a comparatively low carbon footprint with ambitious improvement targets.”
ArcelorMittal specifies that it will not pursue a tender offer for the remaining Vallourec shares over the next six months.
Dom Yanchunas USA
