Vallourec announces the acquisition by ArcelorMittal of the stake held by the American fund Apollo. This transaction, valued at 955 million euros, concerns 28.4% of voting rights and 27.5% of share capital. Vallourec thus marks a strategic turning point after overcomingmajor financial difficulties.
From restructuring to diversification
Vallourec’s intense financial restructuring, including plant closures and the loss of 3,000 jobs, paved the way for this change of ownership. The arrival of ArcelorMittal means a transition to a more industrial shareholder base. This partnership is seen as an opportunity toaccelerate decarbonization and explore new markets such as CO2 capture and geothermal energy.
Implications for ArcelorMittal
For ArcelorMittal, this operation marks an expansion in the seamless tubes sector, complementing its welded tubes business. The investment in Vallourec opens up prospects in innovative fields such as green hydrogen storage. ArcelorMittal plans to integrate this new branch into its sustainable development strategy.
Finalizing the transaction
Completion of the purchase is scheduled for the second half of 2024, following regulatory approvals. Vallourec and ArcelorMittal are planning a shareholders’ agreement that will give ArcelorMittal two seats on the Board of Directors. This step consolidates Vallourec’s financial prospects while opening up avenues for strategic collaboration.
Implications of the transaction for Vallourec
Vallourec’s handover from Apollo to ArcelorMittal marks a significant change in the company’s shareholder structure. This reflects a strategic move towards closer association with a major industrial player, capable of supporting Vallourec in its sustainable development and technological innovation initiatives. The impact of this transaction is likely to extend beyond the simple acquisition of shares, influencing Vallourec’s long-term strategies.
ArcelorMittal’s acquisition of Apollo’s stake transforms Vallourec’s shareholder landscape, marking a new era of industrial collaboration focused on innovation and sustainability. This strategic alliance highlights the growing importance of the energy transition in corporate decision-making.
