France-based pipe manufacturer Vallourec has announced that it has finalized the merger of its Brazilian subsidiaries, Vallourec Tubos do Brasil (VBR) and Vallourec & Sumitomo Tubos do Brasil (VSB), the latter being a joint venture between Vallourec, Japanese steelmaker Nippon Steel & Sumitomo Metal Corporation (NSSMC) and Japan-based Sumitomo Corp. Vallourec holds a majority stake of 84.6 percent in the new entity called Vallourec Soluções Tubulares do Brasil, NSSMC holds 15 percent and Sumitomo Corp. holds 0.4 percent.
Vallourec stated that the merger is part of Vallourec’s global transformation plan announced in early February this year which aims at enhancing the company’s competitiveness and driving its return to solid profitability and cash generation. The new entity will be fully consolidated in Vallourec’s financial statements as from October 1 and the interests held by NSSMC and Sumitomo Corp. will be recorded as non-controlling interests.