ArcelorMittal S.A. MT recently announced that it has unlocked value from its investment in Vallourec SA through a partial sell-down of its shareholding, with proceeds being allocated toward share buybacks. The company sold around 23.9 million Vallourec shares, representing roughly 10% of Vallourec’s outstanding share capital, at €24 per share, generating gross proceeds of roughly $667 million (€573 million). Settlement is expected to occur on or around May 21, 2026.
ArcelorMittal will retain an approximately 17.3% stake in Vallourec and continue to hold a board seat, reflecting its ongoing strategic interest in the company. ArcelorMittal had originally acquired a 28.4% stake in Vallourec in 2024 from funds managed by Apollo Global Management, Inc. at €14.64 per share.
Per MT, the proceeds will be directed toward ongoing share repurchase programs as part of its shareholder return strategy. The company emphasized that the transaction demonstrates disciplined capital allocation by monetizing a successful investment while continuing to support Vallourec’s long-term growth prospects in premium tubular products and energy-transition-related applications.
Shares of MT popped 90.1% in the past year compared with the industry’s 76.1% rise.
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MT’s Zacks Rank & Key Picks
MT currently carries a Zacks Rank of #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Nucor Corporation NUE, L.B. Foster Company FSTR and Albemarle Corporation ALB. NUE, FSTR and ALB sport a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NUE’s current-year earnings stands at $14.58 per share, implying an 89.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.1%.
The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%.
The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.45 per share, indicating a 1,675.9% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%.
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This article originally published on Zacks Investment Research (zacks.com).
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