Nippon Steel Corporation (Nippon Steel) announced that it has reached an agreement with Vallourec S.A. (Vallourec), an important strategic partner in the pipe and tube business, regarding Nippon Steel’s participation in the share capital increase proposed by Vallourec in the form of a rights offering to subscribe to new Vallourec shares, with preferential subscription rights for existing shareholders (the Rights Issue).
The strengthened financial stability of Vallourec will provide a robust foundation for Nippon Steel to continue the cooperation with Vallourec, which is an important strategic partner in the pipe and tube business. Nippon will pursue to increase the profitability of its pipe and tube business by enhancing and accelerating, together with Vallourec, the development, industrialization and customer service regarding VAM premium joints, as well as improving the cost competitiveness of VSB. With this objective, Nippon Steel has decided to subscribe to the new shares to be issued by Vallourec through the Rights Issue, aiming to hold approximately 10% of Vallourec’s share capital upon completion of the Rights Issue. The total net amount to be newly invested by Nippon Steel is capped at EUR 35M.
