ArcelorMittal completes acquisition of strategic stake in Vallourec

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ArcelorMittal has finalized the acquisition of a significant equity interest in French industrial company Vallourec, following the completion of regulatory approvals and other formalities. The deal, which involves the purchase of 65,243,206 shares representing approximately 28.4% of Vallourec’s equity, was completed at a price of €14.64 per share. The total value of the transaction stands at roughly €955 million, subject to the successful completion of the settlement process.

This acquisition marks a strategic move by ArcelorMittal to expand its portfolio in the tubular products market, an area identified by the company as having substantial growth potential, particularly in the context of new clean energy markets.

As part of the agreement, several key appointments have been made within Vallourec’s board. Genuino Magalhaes Christino, Chief Financial Officer of ArcelorMittal, will join as a director, while Keith Howell, Chief Operating Officer of ArcelorMittal USA, will also take a seat on the board. Additionally, ArcelorMittal CEO Aditya Mittal will assume the role of an observer at Vallourec, pending the completion of the settlement.

In a statement accompanying the announcement, Aditya Mittal highlighted Vallourec’s strong market position and its potential for future growth. "Vallourec is well established as a producer of high-quality tubular products, holding a prime position in an attractive market segment that has potential for growth from new, clean energy markets," Mittal said. He emphasized that this strategic stake would complement ArcelorMittal’s broader investment portfolio, enhancing the company’s capabilities and market exposure.

Mittal also underscored ArcelorMittal’s broader growth strategy, pointing to recent successful acquisitions in Brazil and the United States as examples of the company's expansion efforts. "These initiatives will significantly strengthen our business, expanding our product capabilities and emerging markets exposure while enhancing our earnings capacity," he added.

Despite this significant acquisition, ArcelorMittal has clarified that it does not intend to launch a tender offer for Vallourec’s remaining shares within the next six months. The company stated that it would keep the market informed should there be any changes to this stance.

Source and Photo: ArcelorMittal