Vallourec closes on acquisition of Tianda Oil Pipe
Vallourec has announced that it's closed on the acquisition of a majority stake (50.61%) within the Chinese company, Anhui Tianda Oil Pipe Company limited (TOP) and thereby increased its total stake to 70.07%. This method coincides with the commencement of a mandatory unconditional cash bid for the remaining minority interest in top, which can close on Dec. 2, 2016, unless Vallourec revises or extends the bid in accordance with the hong kong Code on Takeovers and Mergers. the 2 transactions value TOP's share (50.61% + 29.93%) at approximately $175 million.
TOP may be a Chinese manufacturer of seamless tubes listed on the city stock exchange. TOP's industrial assets include, in particular, a PQF 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 feb. 1, 2016, is a component of the Vallourec 2015-2020 Transformation plan. it'll enable Vallourec to create a new and very competitive production hub in China to provide the domestic market and export, particularly in Asia and the middle east. it'll enable Vallourec to develop a wider vary of solutions that mix VAM connections with Tianda's very competitive tubes to support the market share of VAM connections.
Vallourec has been gift in China for more than 20 years. At the top of 2016, Vallourec can have 2,000 employees (including TOP) in China on 5 production sites that serve each the oil and gas market and therefore the power generation market. In 2015, China represented almost seven-membered of the Group's total revenue.