ArcelorMittal Acquires 28.4% Stake in Vallourec for €955 Million, Strengthens Board Representation

ArcelorMittal Acquires 28.4% Stake in Vallourec for €955 Million, Strengthens Board Representation

(IN BRIEF) ArcelorMittal has completed the acquisition of a 28.4% equity interest in Vallourec from Apollo Global Management for approximately €955 million. Following the acquisition, ArcelorMittal executives will join Vallourec’s board. ArcelorMittal does not plan to launch a tender offer for the remaining shares within the next six months. CEO Aditya Mittal emphasized Vallourec’s strong market position and potential growth in clean energy markets, aligning with ArcelorMittal’s strategic expansion efforts.

(PRESS RELEASE) LUXEMBOURG, 6-Aug-2024 — /EuropaWire/ — ArcelorMittal has successfully acquired 65,243,206 shares, representing approximately 28.4% equity interest in Vallourec, from funds managed by Apollo Global Management Inc. at a price of €14.64 per share, amounting to roughly €955 million. This follows the signature of a Share Purchase Agreement on March 12, 2024, and subsequent approvals from relevant antitrust authorities and foreign investment regulators.

With the completion of this transaction, ArcelorMittal’s Chief Financial Officer Genuino Magalhaes Christino will join Vallourec’s board as a director. Keith Howell, Chief Operating Officer of ArcelorMittal USA, will also be appointed as a director, and Aditya Mittal will serve as an observer, all subject to the final settlement.

ArcelorMittal has stated it does not plan to launch a tender offer for Vallourec’s remaining shares within the next six months but will notify the market if this intention changes.

Aditya Mittal, CEO of ArcelorMittal, highlighted Vallourec’s strong position in the high-quality tubular products market, noting its potential growth in clean energy markets. He emphasized that the strategic stake aligns with ArcelorMittal’s investment portfolio and ongoing efforts to expand and improve business performance. Mittal also pointed to successful acquisitions in Brazil and the US, along with upcoming organic growth projects, as key factors in strengthening ArcelorMittal’s business and enhancing its market capabilities and earnings potential.

About ArcelorMittal

ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2023 generated revenues of $68.3 billion, produced 58.1 million metric tonnes of crude steel and, 42.0 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

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SOURCE: ArcelorMittal