ArcelorMittal completes acquisition of 28.4% stake in French Vallourec

The value of the deal is estimated at €955 million

Global steel company ArcelorMittal has completed the acquisition of a 28.4% stake in French pipe manufacturer Vallourec. The deal is valued at €955 million. This is stated in a press release from Vallourec.

The acquisition was approved by all regulatory authorities. The previous owner of 28.4% of Vallourec shares was Apollo. The transaction expands ArcelorMittal’s presence in the global pipe market, as Vallourec has production facilities in the US and Brazil.

As a result of the transaction, Genuino Magalhaes Cristino has been appointed Director of Vallourec. He will also join the Audit and Remuneration Committees. Aditya Mittal has been appointed to the Supervisory Board and Keith James Howell to the Nomination and Governance Committee as an advisor.

ArcelorMittal does not intend to expand its stake in Vallourec in the next six months.

Vallourec specializes in manufacturing products for the energy, automotive and construction industries. 85% of the company’s rolling capacity is concentrated around low-carbon integrated production centers in the US and Brazil. Both markets are strategically important for ArcelorMittal.

In 2023, Vallourec reported EBITDA of €1.2 billion on sales of €5.1 billion. The company’s EBITDA is expected to grow by 10-15% by 2030 due to the global transition to green production.

Vallourec’s steelmaking facilities in Brazil and the United States have low carbon emissions – 0.945 t/CO2 per ton of steel and 0.290 t/CO2 per ton of steel, respectively. At the same time, the company plans to reduce emissions by 30% by 2030 and by 35% – by 2035 (compared to the base year of 2021).

As GMK Center reported earlier, ArcelorMittal announced the signing of a 28.4% stake in Vallourec, one of the world’s leading seamless pipe manufacturers, in early March this year. Since then, the deal has been subject to regulatory approval.