ArcelorMittal Finalizes Acquisition of 28.4% Stake in Vallourec

On August 6, 2024, ArcelorMittal announced that it has completed the acquisition of 65,243,206 shares, representing approximately 28.4% equity interest in Vallourec. This follows the signing of a Share Purchase Agreement on March 12, 2024, and the subsequent approval from antitrust authorities and foreign investment regulators. The shares were acquired from funds managed by Apollo Global Management Inc. at a price of €14.64 per share, amounting to a total of around €955 million, pending successful settlement completion.

Upon the completion of this transaction, Mr. Genuino Magalhaes Christino (Chief Financial Officer, ArcelorMittal) will officially assume his role as a director of Vallourec. Additionally, Keith Howell (Chief Operating Officer, ArcelorMittal USA) will be appointed as a director of Vallourec, and Aditya Mittal will serve as an observer, pending the successful completion of the settlement.

ArcelorMittal has no plans to initiate a tender offer for the remaining Vallourec shares within the next six months but will notify the market if this intention changes.

Aditya Mittal, CEO of ArcelorMittal, commented:   “Vallourec is a leading producer of high-quality tubular products, positioned strongly in a promising market segment with growth potential from emerging clean energy markets. This strategic stake is a valuable addition to our investment portfolio, and we are eager to support Vallourec’s management team in driving further performance improvements. 

This investment aligns with our broader growth strategy. The acquisitions we’ve made in Brazil and the US in recent years are performing well, and we are making steady progress on our organic growth projects, with several expected to be completed this year. These initiatives will significantly bolster our business by expanding our product offerings, increasing our presence in emerging markets, and enhancing our earnings potential.”

ArcelorMittal is one of the world’s leading integrated steel and mining companies, operating in 60 countries with primary steelmaking facilities in 15. It is Europe’s largest steel producer, ranks among the top in the Americas, and is expanding its presence in Asia through its joint venture, AM/NS India. The company serves a wide array of customers across industries such as automotive, engineering, construction, and machinery. In 2023, ArcelorMittal generated $68.3 billion in revenue, producing 58.1 million metric tonnes of crude steel and 42.0 million tonnes of iron ore.

The company's mission is to produce smarter steels for both people and the planet, focusing on innovative processes that reduce energy consumption, significantly lower carbon emissions, and cut costs. These steels are more environmentally friendly, durable, and recyclable, and are crucial for developing renewable energy infrastructure that will facilitate societal transformation throughout this century. With steel at its core, and driven by inventive people and an entrepreneurial spirit, ArcelorMittal is committed to supporting global progress. The company is publicly traded on stock exchanges in New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT), and across Spain in Barcelona, Bilbao, Madrid, and Valencia (MTS).