French steel pipe producer Vallourec has announced that, after negotiations with the US oil services company National Oilwell Varco (NOV), it has received a binding offer for the purchase of the Vallourec Drilling Products business, for a total cash amount of $63 million.
According to Vallourec’s statement, the offer covers all of Vallourec’s industrial activities related to Vallourec Drilling Products in North America, in the Middle East, in the Netherlands, and in France (one plant in Aulnoye-Aymeries, Hauts de France). Meanwhile, the French “Drilling Products” sites in Cosne sur Loire (Bourgogne-Franche Comté) and in Tarbes (Occitanie) would undergo an independent divestment process at the same time.
This divestment further supports Vallourec’s transformation plan aiming at strengthening its competitiveness in its strategic markets. In accordance with the applicable regulations, the divestment is conditional upon the approval of governance structures and consultation with the relevant staff representative bodies.
Vallourec Drilling Products, with an overall workforce of around 600 employees, offers a wide range of products including drill pipes, drilling accessories and other tubular products.