Boulogne-Billancourt (France), November 14, 2016 – Vallourec is pleased to announce that it has closed the acquisition of a majority stake (50.61%) in the Chinese company, Anhui Tianda Oil Pipe Company Limited (TOP) and thereby increased its total stake to 70.07%1. This process coincides with the commencement of a mandatory unconditional cash bid for the remaining minority interest in TOP, which will close on December 2, 2016, unless Vallourec revises or extends the bid in accordance with the Hong Kong Code on Takeovers and Mergers. The two transactions value TOP’s share (50.61% + 29.93%) at approximately 175 million US dollars.
Tianda Oil Pipe Company Limited is a Chinese manufacturer of seamless tubes listed on the Hong Kong Stock Exchange. TOP's industrial assets include, in particular, a state-of-the-art PQF®2 rolling mill with 500 kt capacity as well as a tube heat treatment and threading workshop. The company has 1,500 employees.
This acquisition, announced on February 1, 2016, is part of the Vallourec 2015-2020 Transformation Plan. It will enable Vallourec to create a new and very competitive production hub in China to supply the domestic market and export, particularly in Asia and the Middle East. It will allow Vallourec to develop a wider range of solutions that combine VAM® connections with Tianda's very competitive tubes to support the market share of VAM® connections.
“The integration of Anhui Tianda Oil Pipe fulfills 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” said Philippe Crouzet, Chairman of the Management Board. Didier Hornet, SVP Eastern Hemisphere in charge of the Oil & Gas strategy, added: “we are delighted to welcome the TOP teams that have been our partners over the past five years for the delivery of tubes both to the Chinese market and to export markets”.
Vallourec has been present in China for more than 20 years. At the end of 2016, Vallourec will have 2,000 employees (including TOP) in China on five production sites that serve both the oil and gas market and the power generation market. In 2015, China represented almost 7% of the Group's total revenue.
1In 2011, Vallourec acquired 19.5% stake in TOP
2PQF = Premium Quality Finishing
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