(Alliance News) - ArcelorMittal SA on Wednesday said it had acquired a 28.4% stake in French steel manufacturer, Vallourec SA.
ArcelorMittal, the Luxembourg-based multinational steel manufacturing corporation, bought the shares from funds managed by Apollo Global Management Inc for EUR955 million, or EUR14.64 per share.
Shares in ArcelorMittal rose 0.3% to USD24.74 each in Amsterdam on Wednesday.
Shares in Vallourec advanced 7.4% to EUR15.94 in Paris.
"Having carried out a successful restructuring in recent years, Vallourec presents a compelling opportunity to increase ArcelorMittal's exposure to the attractive, downstream, value-added tubular market," ArcelorMittal said in a statement.
In 2023, Vallourec reported earnings before interest, tax, depreciation and amortisation of EUR1.2 billion on sales of EUR5.1 billion.
It expects Ebitda from the energy transition business to reach between 10% and 15% by 2030, given the growth potential from hydrogen, geothermal and carbon capture.
ArcelorMittal said it does not intend to launch a tender offer for Vallourec's remaining shares over the next six months.
ArcelorMittal Chief Executive Aditya Mittal said: "Vallourec is a quality, high added-value tubular business, with established positions of strength in the attractive Brazilian and US markets. As a producer of premium tubular solutions, it has a critical role to play in the energy transition, producing vital products for hydrogen, CCS and geothermal applications, for which demand is expected to grow. It also has a comparatively low carbon footprint with ambitious improvement targets. We look forward to being part of the company's future."
The deal is expected to close in the second half of 2024.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
ArcelorMittal splashes EUR955 million to take 28% stake in Valourec
(Alliance News) - ArcelorMittal SA on Wednesday said it had acquired a 28.4% stake in French steel manufacturer, Vallourec SA.
ArcelorMittal, the Luxembourg-based multinational steel manufacturing corporation, bought the shares from funds managed by Apollo Global Management Inc for EUR955 million, or EUR14.64 per share.
Shares in ArcelorMittal rose 0.3% to USD24.74 each in Amsterdam on Wednesday.
Shares in Vallourec advanced 7.4% to EUR15.94 in Paris.
"Having carried out a successful restructuring in recent years, Vallourec presents a compelling opportunity to increase ArcelorMittal's exposure to the attractive, downstream, value-added tubular market," ArcelorMittal said in a statement.
In 2023, Vallourec reported earnings before interest, tax, depreciation and amortisation of EUR1.2 billion on sales of EUR5.1 billion.
It expects Ebitda from the energy transition business to reach between 10% and 15% by 2030, given the growth potential from hydrogen, geothermal and carbon capture.
ArcelorMittal said it does not intend to launch a tender offer for Vallourec's remaining shares over the next six months.
ArcelorMittal Chief Executive Aditya Mittal said: "Vallourec is a quality, high added-value tubular business, with established positions of strength in the attractive Brazilian and US markets. As a producer of premium tubular solutions, it has a critical role to play in the energy transition, producing vital products for hydrogen, CCS and geothermal applications, for which demand is expected to grow. It also has a comparatively low carbon footprint with ambitious improvement targets. We look forward to being part of the company's future."
The deal is expected to close in the second half of 2024.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News