ArcelorMittal becomes anchor shareholder of Vallourec

ArcelorMittal, the world’s largest steel corporation, acquires strategic stake in Vallourec.

ArcelorMittal has completed its acquisition of a share in Vallourec of approximately 28.4 percent. The total share purchase price corresponds to approximately € 955 million and is subject to the successful settlement-delivery of the shares. Following completion of this transaction, the appointment of Genuino Magalhaes Christino (Chief Financial Officer, ArcelorMittal) as Director of Vallourec will become effective, Keith Howell (Chief Operating Officer, ArcelorMittal USA) will be appointed as Director of Vallourec and Aditya Mittal will be appointed as Board Observer of Vallourec, subject to successful completion of the settlement. ArcelorMittal reports that it does not intend to launch a tender offer for Vallourec’s remaining shares over the next six months and will inform the market should this intention change.
Aditya Mittal, CEO of ArcelorMittal: “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. The strategic stake is a welcome addition to our investment portfolio, and we look forward to supporting Vallourec’s management team in their efforts to drive further performance improvement.”
According to Mittal, the investment supports ArcelorMittal’s ongoing efforts to grow its business. “The acquisitions we have made in recent years in Brazil and the US are performing well and progress with our suite of organic growth projects continues apace, with several due to complete this year. These initiatives will significantly strengthen our business, expanding our product capabilities and emerging market exposure while enhancing our earnings capacity”, says Mittal.
Source: ArcelorMittal