ArcelorMittal to Strengthen Its European Tube Business with Two Planned Acquisitions in France.
ArcelorMittal, the world's leading steel company, today announces that it has reached a preliminary agreement to acquire two steel tube businesses from Vallourec. The agreement forms part of ArcelorMittal's strategy to expand its business in the automotive sector, as well as further strengthening the company's pipes and tubes business.
Both businesses enjoy strong positions in the European steel tubes market. Vallourec Precision Soudage (VPS) produces about 100,000 tonnes of welded steel tubes for application in the automotive industry from two sites in France. Also based in France, Vallourec Composants Automobiles Vitry (VCAV) specialises in the design and manufacturing of tubular components for the automotive industry.
Combining them with ArcelorMittal's existing pipes and tubes business, will allow offering an even more complete range of products to its automotive customers.
Mr Malay Mukherjee, a member of ArcelorMittal's Group Management Board said: "The planned acquisition of these businesses is complementary to the leading position of ArcelorMittal in the automotive business. It will enable us to strengthen our automotive products portfolio, especially in precision tubes and tubular automotive components by adding these new European facilities to our existing North American and European assets. The acquisition will also broaden our tubes related R&D capabilities. VPS and VCAV will also benefit from being part of the largest steel company, through significant commercial synergies and sharing of knowledge from across the group. "
The project will be presented to the relevant employee representative bodies for consultation. Completion of the transaction is conditional upon a clearance decision by the competent competition authorities.
ArcelorMittal is the world's number one steel company, with 320,000 employees in more than 60 countries. The company brings together the world's number one and number two steel companies, Arcelor and Mittal Steel.
ArcelorMittal is the leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal key pro forma financials for 2006 show combined revenues of USD 88.6 billions, with a crude steel production of 118 million tonnes, representing around 10 per cent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid (MTS) and Valencia.
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|Date:||Jul 20, 2007|
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