ArcelorMittal to acquire automotive steel business of French company

Mumbai: ArcelorMittal, the world''s biggest steel maker, will acquire French major Vallourec''s two steel tube-making units for an undisclosed sum, as it expands its presence in the automotive sector.

The two units - Vallourec Pricision Soudage and Vallourec Composants Automobiles Vitry - manufacture welded steel tubes and tubular components respectively for the automotive industry, ArcelorMittal said in a statement.

VPS has an annual capacity to produce 1,00,000 tonnes, the statement added.

"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," the statement quoted ArcelorMittal group director Malay Mukherjee as saying.

The deal, however needs clearance from the competition authorities, the company said, adding that, "the project will be presented to the relevant employee representative bodies for consultation soon."

Shares in Vallourec surged 2.3 per cent on renewed market talk that Arcelor Mittal is planning a bid for the company.