Vallourec

ArcelorMittal is placing 23m Vallourec shares (10% of VK's capital), a placement that would be “several times oversubscribed”.

The move is not a big surprise to us:

1- We had always believed that the investment in the tubes & pipes maker was purely financial, as announced at the time of the deal (summer 2024).

2- The share price performance has been great: c.+65% in less than 2 years since ArcelorMittal stepped in, i.e. a c.€220m capital gain.

At the end of the day, the share of ArcelorMittal in Vallourec will go down from c.28% to c. 18%.

From Vallourec’s perspective, the move may weigh a bit on the share price, but the timing is not that bad. Even if the recent performance suggests a pause, fundamentals are sound and the prospects of the industry are positive in the current oil price context. Note that our price target has been reached as of late, which makes ArcelorMittal’s move “even less of a surprise”.

We may increase our numbers (on Vallourec) after the Q126 results, but we expect changes will only be minor.


For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu