Vallourec: MT sell down removes buyout optionality

Research evidence excerpt

Vallourec: MT sell down removes buyout optionality

Equity Research

European Energy Services

19 May 2026

Vallourec

MT sell down removes buyout

optionality First Look

The partial sell down by MT of its holding in VK raises the VLLP.PA/VK FP OVERWEIGHT

question of why now and potentially removes the optionality European Energy Services POSITIVE

that MT may go the other way and increase its stake Price Target EUR 30.00

Price (18-May-26) EUR 26.07

Potential Upside/Downside +15.1%

Last night ArcelorMittal announced selling 23.9mn of its 65.4mn shareholding in Source: Bloomberg, Barclays Research

Vallourec (link), leaving it with a ca17% stake. The stake was originally purchased in March

24 from the restructuring parties at EUR14.65/sh, hence the placement locks in a ca 75% European Energy Services

profit. The question for Vallourec holders is "why now?", with the prospect of a energy Mick Pickup

capex resurgence crystalline a strong share price performance this year (the shares are up +44 (0)20 3134 6695

66% versus the sector (EMEAOGP up 47%). We would note that they still have a significant mick.pickup@barclays.com

stake of over EUR1bn and history with Vallourec shows that industrial sellers can sell Barclays, UK

before the peak. However, the optionality that ArcelorMittal might further its stake in Pratik Kadam

Vallourec has been on if the differentiators of the investment case versus its direct peer, +91 (0)22 6175 2301

Tenaris and now arguably, without clarification form the seller, the takeover option may pratik.kadam@barclays.com

have become an overhang. Barclays, UK

Did the buyback cause the action? Vallourec is executing a EUR200mn buyback of which

EUR91mn was executed at 1Q26. The issue we saw was that ArcelorMital's 28% stake was close