In a press release on Monday, the renowned steelmaker from Hamilton, Ontario, announced that it had agreed to sell all of its issued and outstanding common shares to Ohio-based Cleveland-Cliffs, one among North America’s largest steelmakers, for $70 per share.
“I know Cliffs will continue to build on the excellent working and living environment we have created for all of our employees and will continue to be a reliable supplier to our valued customers, while maintaining Stelco’s standing and reputation in Canada and safeguarding our Canadian national interests,” said Stelco CEO Alan Kestenbaum.
As a part of the agreement, Stelco’s headquarters will remain in Hamilton and the corporate will maintain “significant levels of employment” in Canada and add Canadians to its management team.
Lourenco Goncalves, CEO of Cleveland-Cliffs, said Kestenbaum was in a position to “transform a poorly performing asset under previous ownership into a very cost-efficient and profit-oriented company.”
The deal is anticipated to shut within the fourth quarter of 2024.
Stelco’s ownership history
This shouldn’t be the primary time that Stelco has passed into foreign hands. US Steel acquired the 114-year-old company in 2007, just before the worldwide financial crisis triggered a recession. In 2014, America’s second-largest steelmaker placed its Canadian operations under creditor protection.
Kestenbaum took over as CEO in 2017 (other than a one-year absence in 2019), modernized Stelco’s blast furnaces and repositioned the corporate through acquisitions toward increased steel production for automakers.
David McCall, international president of the United Steelworkers union, supported the sale to Cleveland-Cliffs, calling it “great for the stability of manufacturing and union jobs” in North America.
