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Report: Overseas Bidder Looking at U.S. Steel Canada, Essar Algoma
07/18/2016 - A metals trading firm that seems to have lost out on its bid to acquire all of Tata Steel’s U.K. business is turning its attention to overseas targets, reports The (London) Financial Times.
According to The Times, the firm, Liberty House, is kicking the tires on two of Canada’s largest steelmakers, U. S. Steel Canada and Essar Steel Algoma, both of which are operating under creditor protection as they seek a buyer.
The sale of each is ongoing. And the separate sales processes suffered a setback last week after a bidder, New York based private equity firm KPS Capital Partners, backed out. KPS had been looking to acquire both U. S. Steel Canada and Essar Algoma and merge them, making a bigger and what it hoped would be a financially healthier operation.
After KPS pulled out, U. S. Steel Canada’s chief restructuring officer said in a court filing that the company would extend discussions with remaining bidders for another three weeks, according to The Hamilton Spectator newspaper. At Essar Algoma, the term lenders KPS had partnered with to acquire the steelmaker said they’ll continue to work toward finalizing a sale on their own.
Back in the U.K., Tata is now in talks on merging its Welsh strip business with thyssenkrupp through a joint venture as it looks sell other aspects of the larger U.K. operation separately.
According to The (London) Telegraph, Liberty House was prepared to buy the entire operation and had offered more than £100 million for it.
The sale of each is ongoing. And the separate sales processes suffered a setback last week after a bidder, New York based private equity firm KPS Capital Partners, backed out. KPS had been looking to acquire both U. S. Steel Canada and Essar Algoma and merge them, making a bigger and what it hoped would be a financially healthier operation.
After KPS pulled out, U. S. Steel Canada’s chief restructuring officer said in a court filing that the company would extend discussions with remaining bidders for another three weeks, according to The Hamilton Spectator newspaper. At Essar Algoma, the term lenders KPS had partnered with to acquire the steelmaker said they’ll continue to work toward finalizing a sale on their own.
Back in the U.K., Tata is now in talks on merging its Welsh strip business with thyssenkrupp through a joint venture as it looks sell other aspects of the larger U.K. operation separately.
According to The (London) Telegraph, Liberty House was prepared to buy the entire operation and had offered more than £100 million for it.
