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Two Potential Buyers Said to Have Bids on U. S. Steel Canada
06/15/2016 - A private equity firm and an industrial conglomerate have entered the final stage of bidding for U. S. Steel Canada, which is operating under creditor protection as it seeks a buyer, reports The Hamilton Spectator newspaper.
Citing anonymous sources with knowledge of the process, the newspaper said the bidders are India’s Essar Group and New York’s KPS Capital Partners LP.
"This process is really down to two going-concern bidders," one source told the newspaper. "Essar and KPS are the only two strategic bidders.”
KPS reportedly is also bidding on Canadian steelmaker Essar Steel Algoma, which, too, is operating under creditor protection as it seeks a buyer. KPS’ interest opens the possibility of a merger between the two steel companies, although some have said such a deal would be unfeasible.
And Essar Algoma may not be sold after all. The (Toronto) Globe and Mail newspaper reported on Tuesday that the company is exploring the possibility of restructuring without an outside investor.
But as for U. S. Steel Canada, any buyer will have two significant hurdles to clear – a major funding shortfall in the steelmaker’s pension plan and satisfying the secured debt claims of former parent company United States Steel Corp., The Spectator reported.
"This process is really down to two going-concern bidders," one source told the newspaper. "Essar and KPS are the only two strategic bidders.”
KPS reportedly is also bidding on Canadian steelmaker Essar Steel Algoma, which, too, is operating under creditor protection as it seeks a buyer. KPS’ interest opens the possibility of a merger between the two steel companies, although some have said such a deal would be unfeasible.
And Essar Algoma may not be sold after all. The (Toronto) Globe and Mail newspaper reported on Tuesday that the company is exploring the possibility of restructuring without an outside investor.
But as for U. S. Steel Canada, any buyer will have two significant hurdles to clear – a major funding shortfall in the steelmaker’s pension plan and satisfying the secured debt claims of former parent company United States Steel Corp., The Spectator reported.
