By Nina Kienle


ArcelorMittal said it acquired Apollo Global Management's stake in French manufacturing company Vallourec for 955 million euros ($1.04 billion).

The Luxembourg-based steel maker said late Tuesday that it had agreed to buy 65.2 million shares in Vallourec, representing an interest of about 28.4%, for EUR14.64 a share. The price compares with Vallourec's closing price on Tuesday of EUR14.84.

Apollo said separately that the deal will mark the exit of funds it manages from the investment upon closing. The U.S. firm became Vallourec's largest investor in 2021.

The stake purchase aims to expose ArcelorMittal to strategic markets as 85% of Vallourec's 2.2 million metric tons of annual rolling capacity is focused around low-carbon, integrated production hubs in the U.S. and Brazil, the company said.

ArcelorMittal doesn't plan to launch a tender offer for Vallourec's remaining shares over the next six months, it said.

Apollo said the transaction is expected to close in the second half of the year, subject to meeting customary closing conditions.

In 2023, Vallourec reported earnings before interest, taxes, depreciation, and amortization of EUR1.2 billion on sales of EUR5.1 billion.


Write to Nina Kienle at nina.kienle@wsj.com


(END) Dow Jones Newswires

03-13-24 0318ET