ArcelorMittal to acquire 28.4% stake in Vallourec for $1 billion

ArcelorMittal-Vallourec stake deal: Steel manufacturer ArcelorMittal announced on Tuesday its plans to purchase a 28.4 per cent stake in Vallourec for approximately 955 million euros ($1.04 billion), aiming to enhance its presence in tubular business.

ArcelorMittal, world's second-largest steelmaker, disclosed that it has reached an agreement with funds managed by Apollo Global Management to acquire 65.24 million shares in France-based company at a price of 14.64 euros per share.

Luxembourg-based holding company clarified that it does not intend to initiate a tender offer for remaining shares of Vallourec over next six months.

itya Mittal, CEO of ArcelorMittal, expressed optimism about acquisition, highlighting Vallourec's role in producing premium tubular solutions essential for energy transition initiatives such as hydrogen, CCS, and geormal applications.

Vallourec, specialising in seamless and welded steel tube products for industrial use, expects to achieve strong earnings before interest, taxes, depreciation and amortisation (EBITDA) for full year due to favourable pricing dynamics and operational enhancements.

ArcelorMittal h reportedly considered a potential offer for US Steel Corp last year, according to Reuters.

(With Reuters Inputs)