Canadian Ministry Clears U.S. Steel’s Acquisition of Stelco
10/30/2007 - United States Steel receives approval of its acquisition of Stelco from the Canadian Minister of Industry under the Investment Canada Act.
United States Steel Corp. has received approval of its acquisition of Stelco Inc. from the Canadian Minister of Industry under the Investment Canada Act.
U. S. Steel had made commitments to the Minister of Industry that highlight the net benefit to Canada as a results of the acquisition. Commitments relate to funding for Stelco's main pension plans, increased production and exports from Canada, significant capital expenditures at Stelco's facilities, R&D, and the transfer of U. S. Steel's operating experience and best practices to the Stelco facilities. Additionally, U. S. Steel will endow a Priority Chair in the Department of Materials Science and Engineering at McMaster University to facilitate the continuing development of steelmaking technology in Ontario.
"We are pleased with this news, which confirms that the Minister of Industry is satisfied that U. S. Steel's acquisition of Stelco will be of net benefit to Canada,” commented Commenting on the approval, John P. Surma, U. S. Steel Chairman and CEO. “U. S. Steel brings the financial strength, operating experience, and advanced research and technology capability that are critical for the continued success of the Stelco facilities. We look forward to realizing the benefits of combining our operations with those of Stelco and to building on the unique talents, commitment and expertise of Stelco's employees."
All regulatory clearances required to complete the acquisition of Stelco have now been obtained. Completion of the arrangement remains subject to the approval of the Ontario Superior Court of Justice at a hearing scheduled for October 30, 2007 and the satisfaction of certain other conditions.
Subject to satisfaction of the remaining conditions, the arrangement is expected to be completed on or about October 31, 2007.
