Expanding its presence in the automotive sector, the world's biggest steel maker ArcelorMittal has reached a preliminary agreement to acquire French major Vallourec's two steel tube-making units for an undisclosed sum. The units - Vallourec Pricision Soudage and Vallourec Composants Automobiles Vitry - specialise in the manufacturing of welded steel tubes and tubular components respectively, for the automotive industry, according to an ArcelorMittal statement here.
VPS has an annual capacity to produce 1,00,000 tons.
"The planned acquisition of these businesses 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," Malay Mukherjee, ArcelorMittal's Group management board member was quoted by the statement as saying.
Completion of the transaction is conditional upon a clearance decision by the competent competition authorities, the company said, adding that, "the project will be presented to the relevant employee representative bodies for consultation soon."
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