ArcelorMittal Consolidates Position in the Tubular Products Segment Through Stake in Vallourec

In a remarkable move to strengthen its market position, Luxembourg steel producer ArcelorMittal has acquired a stake in the business of French pipe manufacturer Vallourec. With the intention of not making a takeover offer for the entire company within the next six months, ArcelorMittal has purchased a 28.4 percent share for a purchase price of approximately 955 million euros. The shares were acquired directly from funds of the financial investor Apollo, as ArcelorMittal recently announced. The capital invested in Vallourec is intended to enable ArcelorMittal to expand its position in various forward-looking industries, with a particular focus on the pipe sector. Vallourec specializes in the production of seamless steel pipes and individual pipe solutions, which primarily supply the energy market, but are also used in the automotive industry and construction sector. The investment is also of strategic importance, as Vallourec has production facilities in the USA and Brazil – markets that are of strategic interest to ArcelorMittal. In the last fiscal year, Vallourec recorded substantial financial success, with a turnover of 5.1 billion euros and earnings before interest, taxes, depreciation, and amortization (EBITDA) of 1.2 billion euros. Official circles expect the transaction to be completed in the second half of the year. This reaffirms ArcelorMittal's commitment to decisively position itself in the growing areas of pipe production and to increase its company value in the long term.