Hamilton, Ont.-based steel maker Stelco Holdings Inc. is set to be acquired by Cleveland-Cliffs Inc. for $3.4 billion.
Stelco says it has agreed to sell all issued and outstanding common shares for $70 per share to the Cleveland-based steel producer.
Stelco chief executive Alan Kestenbaum says he is confident that Cleveland-Cliffs will remain a reliable supplier to its customers, while maintaining Stelco’s “stature and reputation in Canada and maintaining our Canadian national interests.”
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As part of the agreement, Stelco’s headquarters will remain in Hamilton and the company will maintain significant employment levels in Canada, along with Canadian representation on its management team.
Cleveland-Cliffs president and CEO Lourenco Goncalves says Kestenbaum was able to turn an “underperforming asset under previous ownership into a very cost-efficient and profit-oriented company.”
He says the deal “keeps national interests at the forefront and recognizes the importance of the workforce,” noting Stelco respects the union representing its workers, “treats their employees well and leans into their cost advantages.”
Stelco operates two steelmaking sites, both located in Ontario near Lake Erie and in Hamilton shipping approximately 2.6 million net tons of flat-rolled steel annually.
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