[ad_1]
Hamilton, Ontario-based steelmaker Stelco Holdings Inc. is set to be acquired by Cleveland-Cliffs Inc. for $3.4 billion.
Stelco said it has agreed to sell all of its issued and outstanding common stock to the Cleveland-based steelmaker for $70 per share.
Stelco CEO Alan Kestenbaum said he is confident Cleveland-Cliffs will continue to be a reliable supplier to its customers while maintaining Stelco’s position and reputation in Canada and safeguarding our Canadian national interests.
Emails needed on the day
Top news from Canada and around the world.
Under the agreement, Stelco will remain headquartered in Hamilton and the company will retain a significant number of employees in Canada, with Canadian representation on the management team.
Lourenco Goncalves, president and CEO of Cleveland-Cliffs, said Kestenbaum was able to transform “underperforming assets under the previous owner into a cost-effective, profit-oriented company.”
He said the agreement “puts the national interest first and recognises the importance of the workforce”, noting that Stelco respects the unions that represent its workers, “treats its employees well and takes advantage of their cost advantages”.
Stelco operates two steel mills, both located near Lake Erie and in Hamilton, Ontario, and ships approximately 2.6 million net tonnes of flat-rolled steel annually.
© 2024 Global News, a division of Corus Entertainment Inc.
[ad_2]
Source link
