A New Offer Emerges for U. S. Steel Canada
08/09/2016 - An entity that includes shareholders of India’s Essar Global said it has made a formal, binding offer for U. S. Steel Canada, which is operating under creditor protection while it attempts to find a buyer.
In a statement, the entity, called Ontario Steel Investments Ltd., said the bid advances its goal of creating “a true Canadian steel champion.”
“Our offer is the culmination of 18 months of discussions with all of the key stakeholders to find the best outcome for the business. It will provide maximum benefit to all involved, most importantly Stelco's active and retired employees who depend on their pensions and post-employment benefits, as well as a more secure day-to-day operating environment," Ontario Steel said.
It didn’t disclose the size of its offer, but said the bid includes the assumption of CA$954 million in pension liabilities and an annual commitment of CA$25 million for retirement benefits.
“Ontario Steel remains in active discussions with the United Steelworkers union regarding its offer for Stelco, and we look forward to continuing discussions with the province of Ontario to ensure the long-term interests of the community and the environment are protected," the company said.
Ontario Steel intends to acquire not only Stelco, but Essar Steel Algoma, and merge the two operations. Essar Algoma also is operating under creditor protection as it continues to pursue a sale of the business.
Ontario Steel said it submitted an offer for that business on 5 August with support from the United Steelworkers union.
“Our offer is the culmination of 18 months of discussions with all of the key stakeholders to find the best outcome for the business. It will provide maximum benefit to all involved, most importantly Stelco's active and retired employees who depend on their pensions and post-employment benefits, as well as a more secure day-to-day operating environment," Ontario Steel said.
It didn’t disclose the size of its offer, but said the bid includes the assumption of CA$954 million in pension liabilities and an annual commitment of CA$25 million for retirement benefits.
“Ontario Steel remains in active discussions with the United Steelworkers union regarding its offer for Stelco, and we look forward to continuing discussions with the province of Ontario to ensure the long-term interests of the community and the environment are protected," the company said.
Ontario Steel intends to acquire not only Stelco, but Essar Steel Algoma, and merge the two operations. Essar Algoma also is operating under creditor protection as it continues to pursue a sale of the business.
Ontario Steel said it submitted an offer for that business on 5 August with support from the United Steelworkers union.
