ArcelorMittal, the world's biggest steel company, has reached a preliminary agreement to acquire two steel tube businesses from Vallourec, as part of its strategy to expand its business in the automotive sector, as well as further strengthening its pipes and tubes business.
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.
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 has 320,000 employees in more than 60 countries, having brought together the world's number one and number two steel companies, Arcelor and Mittal Steel.