The steel giant stated it will return the proceeds to shareholders through its ongoing share buyback program.

ArcelorMittal announced on Tuesday the sale of a portion of its stake in the French steel tube manufacturer Vallourec for approximately $667 million. The company plans to use these funds to advance its existing share repurchase initiative, thereby returning value to shareholders.

The Luxembourg-based steelmaker sold approximately 23.9 million shares in Vallourec, representing about 10% of the company's total share capital. ArcelorMittal initially invested in Vallourec earlier in 2024, acquiring 65.2 million shares for a 28.4% stake in the company.

In 2024, ArcelorMittal had highlighted the strategic importance of Vallourec's tubular business, particularly its production facilities in the United States and Brazil, within the context of the global energy transition.

The share divestment was executed through an accelerated bookbuild offering directed at institutional investors. The proceeds from this sale will be allocated to the company's regular share buyback program to benefit all shareholders.

The company stated, "This transaction demonstrates ArcelorMittal's disciplined approach to capital allocation and portfolio management."

Following the transaction, ArcelorMittal will retain an ownership stake of approximately 17.3% in Vallourec and will continue to hold one seat on its board of directors. The settlement of the transaction is expected to be completed around May 21.