Vallourec VLLP.PA jumps on the stock market Wednesday morning after the announcement by ArcelorMittal
MT.AS MT.LU of an investment in the capital of the French manufacturer of seamless steel tubes.
On the Paris Stock Exchange, around 09:10 GMT, Vallourec shares climbed 7.11% to 15.89 euros, the highest since June 2020, while ArcelorMittal fell 1.4%, compared to an increase of 0.31 % for the CAC 40 .FCHI index.
ArcelorMittal announced Tuesday evening that it had reached an agreement with the Apollo Global Management APO.N fund to buy back its 28.4% stake in Vallourec for an amount of 955 million euros.
The steelmaker, based in Luxembourg, however, clarified that it did not intend to launch a public purchase offer for the remaining share capital of Vallourec over the next six months.
ArcelorMittal says it sees this operation as an opportunity to increase its exposure to the tubes sector.
The steelmaker studied the possibility of an offer for the American US Steel XN last year, three sources informed of the matter told Reuters.
(Writing by Claude Chendjou, edited by Kate Entringer)