Vallourec closes majority stake acquisition in Anhui Tianda Oil Pipe Company
Vallourec has completed its acquisition-of-majority stake (50.61%) in China-based Anhui Tianda Oil Pipe Company.
With this acquisition, Vallourec has increased its stake to 70.07% in Anhui Tianda Oil Pipe Company.
Vallourec had acquired a 19.5% stake in Anhui Tianda Oil Pipe Company (TOP) in 2011.
The deal closure coincides with the commencement of a mandatory unconditional cash bid for the remaining minority interest in TOP, which will close on 2 December unless Vallourec revises or extends the bid as per the Hong Kong Code on Takeovers and Mergers.
The two deals value TOP’s share at approximately $175m.Listed on the Hong Kong Stock Exchange, Tianda Oil Pipe Company manufactures seamless tubes.
TOP's industrial assets comprise a PQF 2 rolling mill with 500kt capacity and tube heat treatment and threading workshop. The company has a total of 1,500 employees.
This acquisition was announced on 1 February and is part of the Vallourec's 2015-2020 Transformation Plan.
The purchase will help Vallourec to develop a competitive production hub in China, from which it can supply to both local and international markets in Asia and Middle East.
It will allow Vallourec to develop a wider range of solutions that combine VAM connections with Tianda's competitive tubes to support the market share of VAM connections.
Vallourec chairman of the management board Philippe Crouzet said: “The integration of Anhui Tianda Oil Pipe fulfils a long-term strategic vision.
"By combining Vallourec's leadership in premium solutions with TOP's highly competitive operations, we are able to offer a wide range of competitive products that are perfectly suited to our customers’ current needs and challenges.”
Vallourec has been operating in China since the last two decades.
By the end of this year, Vallourec will have 2,000 employees (including TOP) in China on five production sites that serve both oil and gas markets and the power generation market.