ArcelorMittal MT entered into a Share Purchase Agreement to acquire 65,243,206 shares — representing approximately 28.4% equity interest in Vallourec — at a price of €14.64 per share from Funds managed by Apollo Global Management, Inc., totaling around €955 million (roughly $1,043 million). The completion of this transaction is contingent upon regulatory approvals and is likely to be finalized in the later half of the year.

Vallourec, having undergone successful restructuring in recent years, offers a compelling opportunity for ArcelorMittal to expand its presence in the downstream, value-added tubular market. Vallourec, a global leader in premium tubular solutions catering to energy markets and demanding industrial sectors, provides innovative, secure and competitive products for industries such as energy, automotive and construction. A significant portion, approximately 85%, of Vallourec's 2.2 million tons of annual rolling capacity is concentrated in low-carbon, integrated production centers in the United States and Brazil, both of which are crucial strategic markets for ArcelorMittal.

In 2023, Vallourec reported an EBITDA of €1.2 billion from sales totaling €5.1 billion. It foresees the EBITDA generated from its energy transition business to reach 10-15% by 2030, owing to growth prospects in hydrogen, geothermal and carbon capture technologies.

ArcelorMittal has no plans to initiate a tender offer for the remaining shares of Vallourec in the next six months.

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ArcelorMittal highlighted Vallourec as a top-tier tubular business renowned for its quality and value-added solutions. With strong footholds in Brazil and U.S. markets, Vallourec is pivotal in supplying premium tubular products essential for the energy transition. These products are in high demand for applications such as hydrogen, CCS and geothermal energy, indicating promising growth prospects. Vallourec is committed to reducing its carbon footprint, setting ambitious targets for ongoing enhancements. ArcelorMittal eagerly looks forward to collaborating with Vallourec on future ventures.

Vallourec's steelmaking facilities in Brazil and the United States exhibit low carbon emissions, with North American steel production emitting 0.290 tCO2 per ton of steel and Brazilian steel production emitting 0.945 tCO2 per ton of steel. Vallourec set ambitious goals to reduce its CO2 intensity (scopes 1, 2, and 3 upstream) by 30% in 2030 and 35% in 2035 compared with the 2021 baseline.