ArcelorMittal has completed its acquisition of a 28.4pct stake in Vallourec, buying 65,243,206 shares from Apollo Global Management Inc. The deal, valued at approximately EUR 955 mln (USD 1.045 bln), was finalized following the signing of a share purchase agreement on March 12, 2024, and the necessary antitrust and foreign investment regulatory approvals. Each share was purchased at EUR 14.64 (USD 16).
With the acquisition complete, ArcelorMittal will appoint Genuino Magalhaes Christino, Chief Financial Officer of ArcelorMittal, and Keith Howell, Chief Operating Officer of ArcelorMittal USA, as directors of Vallourec. Aditya Mittal will join as an observer, pending successful settlement.
ArcelorMittal has stated that it does not plan to make a tender offer for Vallourec’s remaining shares in the next six months but will update the market if this position changes.
Aditya Mittal, CEO of ArcelorMittal, remarked that Vallourec’s strong position in the high-quality tubular products market and its potential for growth in clean energy markets make this strategic stake a valuable addition to their investment portfolio.
Previously, ArcelorMittal noted that 85pct of Vallourec’s 2.2 mln tons of annual rolling capacity is based in low-carbon, integrated production hubs in the US and Brazil, which are key strategic markets for the company.
1 USD / 0.91 EUR
