Luxembourg-headquartered global steel giant ArcelorMittal has announced that it has completed the acquisition of a 28.4 percent stake in France-based pipe manufacturer Vallourec for about €955 million, following approval by the relevant antitrust authorities. With this acquisition, the company will be able to strengthen its presence in the tubular market as Vallourec has production hubs in the US and Brazil.
Following completion of this transaction, the appointment of Genuino Magalhaes Christino (chief financial officer at ArcelorMittal) as director of Vallourec will become effective, Keith Howell (chief operating officer at ArcelorMittal USA) will be appointed as director of Vallourec, and Aditya Mittal, CEO at ArcelorMittal, as observer at Vallourec. ArcelorMittal does not intend to launch a tender offer for Vallourec’s remaining shares over the next six months.
Vallourec has an annual rolling capacity of 2.2 million mt.