ArcelorMittal has entered into a Share Purchase Agreement to procure 65,243,206 shares, constituting approximately 28.4% equity interest in Vallourec, at a rate of €14.64 per share from Funds managed by Apollo Global Management, Inc., totaling roughly €955 million.
The acquisition of Vallourec stands as a compelling opportunity for ArcelorMittal to bolster its presence in the lucrative downstream tubular market. Vallourec boasts a diverse portfolio of innovative, reliable, and competitive products catering to sectors such as energy, automotive, and construction. With 85% of its 2.2 million tonnes annual rolling capacity concentrated in low-carbon, integrated production hubs in the United States and Brazil—key strategic markets for ArcelorMittal—the synergy between the two companies is evident.
Furthermore, Vallourec anticipates a significant uptick in EBITDA from its energy transition ventures, projected to range between 10 and 15% by 2030. This optimism stems from the burgeoning opportunities in hydrogen, geothermal, and carbon capture technologies, reflecting Vallourec’s forward-looking approach to sustainable business practices.
