ArcelorMittal has agreed to acquire 28.4% of French pipe maker Vallourec for approximately 955 million euros ($1.09 billion).
ArcelorMittal will acquire 65.2 million shares of Vallourec at a price of 14.64 euros per share from funds managed by Apollo Global Management. The parties expect to close the transaction in the second half of 2024, pending regulatory approval.
ArcelorMittal CEO Aditya Mittal calls Vallourec “a high-quality, high-value-add pipe company with a strong position in the attractive markets of Brazil and the United States.”
Vallourec supplies premium pipes for the energy, automotive and construction industries. The statement said 85% of Vallourec's 2.2 million tonne annual rolling mill capacity is concentrated in low-carbon integrated production centres.
“It is set to play a critical role in the energy transition by producing vital hydrogen products, [ carbon capture] and geothermal applications, the demand for which is expected to grow,” Mittal adds. “It also has a comparatively low carbon footprint and ambitious improvement targets.”
ArcelorMittal clarifies that it will not submit a tender offer for the remaining shares of Vallourec for the next six months.
