Report by Bankinter
ArcelorMittal (MTS) has announced an accelerated placement at €24 per share amongst institutional investors of approximately 10% of the share capital of the French seamless tube company Vallourec, in which ArcelorMittal is the largest shareholder with a 27.8% stake as of December 2025. Acquired in 2024 and accounted for using the equity method. The sale generates cash of $667 million.
Bankinter analysis team’s view: The strong performance of the tube company, accounted for using the equity method by ArcelorMittal (up 66% in the current financial year and around 78% since its acquisition), enables ArcelorMittal to realise capital gains and continue its shareholder remuneration policy via share buybacks.
ArcelorMittal will retain a 17.3% stake and continues to be accounted for using the equity method. ArcelorMittal acquired a 28.4% stake in Vallourec in August 2024 (27.8% as at Dec-25) at a valuation of €960 million (~€14.64 per share) from the Apollo Global Management fund. The partial divestment generates cash of around $667 million (approximately €573 million) and capital gains of around €224 million.
Recommendation: Buy, Target Price €54.7 per share
