Jul 24 2007
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 Précision 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.