ArcelorMittal has successfully completed the acquisition of French pipemaker Vallourec. This was done at a price of €14.64 per share, resulting in a total purchase price of €955 million ($1.043 billion). The steelmaker currently has a significant stake in the pipemaker, with 28.4% of the voting rights and 27.5% of the share capital, Kallanish notes.
Genuino Magalhaes Christino and Keith James Howell will be appointed as directors, while Aditya Mittal will serve as an observer. ArcelorMittal has no plans to initiate a tender offer for Vallourec’s remaining shares in the next six months. Any change in this intention will be communicated to the market, a joint statement says.
Vallourec is focusing on developing products for the energy transition. The company is changing its structure to strengthen the performance of its New Energies division. The geothermal energy, hydrogen, carbon sequestration, solar energy and biomass tubular solutions are now integrated into the business line headed by Bertrand de Rotalier. This has been renamed “New Energies, Project Line Pipe and Process”. Vallourec aims to reach 10-15% of Ebitda from New Energies by 2030. Earlier this year, ArcelorMittal agreed to acquire 27.5% of Vallourec. Aditya Mittal said Vallourec 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 (see Kallanish 13 March).
The acquisition makes ArcelorMittal the largest single shareholder, with most Vallourec shares publicly listed.
Natalia Capra France
