Vallourec S.A., the French-based group of companies specialised in hot rolled seamless steel tubes, has inked a contract agreement to buy a 19.5 percent stake in Chinese company Anhui Tianda Oil Pipe Co. Ltd for a consideration of RMB 776 million ($117.2 million).
The contract was signed during a recent visit by Chinese leaders to France. Christine Lagarde, France's minister of economic affairs, industry and employment, and Chen Deming, China's commerce minister, both attended the signing ceremony in Paris.
On September 16 this year, Anhui Tianda Oil Pipe Co., Ltd had announced its decision to invite Vallourec as a strategic partner, while Vallourec confirmed that it would buy 196 million shares listed on the Hong Kong Stock Exchange at RMB 3.96 per share from Anhui Tianda Oil Pipe CO., Ltd. The Chinese company indicated that it will benefit from technological support from Vallourec and from the French company's international sales network.