American Company Bedrock Industries Group has reached a deal to buy beleaguered U.S. Steel Canada, U.S. Steel announced today. The sale is subject to court approvals.
In a statement, provincial minister of finance Charles Sousa called the move an important step towards the former Stelco’s restructuring that will “save jobs, protect pensions and assist in providing post-employment benefits for active and retired employees at USSC’s Hamilton and Lake Erie facilities.”
The agreement comes as the latest in a lengthy restructuring and court process that continues to roll on — and one that is certainly not complete. While the province has a rosy outlook about the news, the steelworker’s union has a decidedly bleaker one.
Bedrock is a private equity investment firm that buys distressed companies and restructures them. The company and the province announced a memorandum of understanding back in September.
Steelworkers Local 1005 president Gary Howe told CBC News that the union is not looking at this news positively.”It’s interesting that two American companies are negotiating in secret to purchase a Canadian company,” he said. “Meanwhile, the pensioners are going to take the hit.
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