ArcelorMittal, the second-largest steel producer in the world, announced on March 12 that it will acquire a 28.4% stake in French tubular steelmaker Vallourec for around EUR 955 million ($1.04 billion) from Apollo Global Management.
The transaction is anticipated to be finalized in the second half of this year, aiming to bolster ArcelorMittal’s presence in the tubular business sector.
Vallourec has an annual rolling capacity of 2.2 million tonnes, 85% of which is concentrated around low-carbon, integrated production hubs in the US and Brazil. The company sold a total of 1.55 million tonnes of tubular steel in 2023, as per its latest financial results released on March 1.
In 2023, Vallourec reported EBITDA of EUR 1.2 billion on sales of EUR 5.1 billion. It expects EBITDA from the energy transition business to reach 10-15% by 2030, given the growth potential from hydrogen, geothermal and carbon capture.
“As a producer of premium tubular solutions, it (Vallourec) 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,” Aditya Mittal, CEO of ArcelorMittal said.
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and BigMint.