Ontario Steel Investments Ltd. has submitted a formal binding offer to purchase U.S. Steel Canada (Stelco). The total proposed purchase price of the offer has not been disclosed.
But the offer does include the assumption at closing of $954 million of employer liabilities under Stelco’s defined benefit registered pension plans and commitment to contribute $25 million per year towards post-employment benefits for active and retired employees, a press release states.
Ontario Steel Investments Ltd. is a new company established by Essar Global that includes a consortium of steel specialists. Ontario Steel Investments has also indicated they are interested in bidding on Essar Steel Algoma but a bid has not yet been formally presented.
It signed a letter of intent with the Local 2251 in July, setting the state to negotiate the framework of an acquisition of Essar Steel Algoma Inc.
An offer for Essar Steel Algoma was submitted to a court-appointed monitor on Aug. 5. Details released in an earlier press release stated Ontario Steel Investments Inc will assume all employer liabilities under Algoma’s defined benefit registered pension plans as well as the liabilities for the other post employment benefits.
The agreement assumes a total purchase price for Algoma of about US$900 million. The offer also called for the payment of all outstanding taxes owed to the City of Sault Ste. Marie within six months of the new ownership and acceptance of all environmental liabilities.
For the rest of this article, click here: http://www.saultstar.com/2016/08/09/ontario-steel-investments-bids-on-hamilton-plant