U.S. Steel agrees to buy Stelco

U.S. Steel Corp. has agreed to buy Hamilton-based Stelco Inc. for $38.50 in cash per share, the companies announced Monday morning.

Under the terms of the agreement, U. S. Steel will acquire all of the outstanding shares for an aggregate value of approximately $1.1 billion US based on approximately 30 million fully diluted shares.

Shareholders owning more than 76 per cent of Stelco's outstanding shares, including Tricap Management Limited, Sunrise Partners Limited Partnership, Appaloosa Management L.P., and Rodney Mott, the CEO of Stelco, have entered into agreements with U. S. Steel irrevocably committing to support the transaction.

U. S. Steel said in a release it expects the acquisition of Stelco to strengthen its position as a premier supplier of flat-rolled steel products to the North American market.

Stelco's Lake Erie Works is the most modern integrated steel plant in North America, and the slabs produced at Stelco's Lake Erie and Hamilton Works will expand U. S. Steel's semi-finished steel supply chain capabilities to support finishing facilities for

After the acquisition, U. S. Steel will have annual raw steel capability of approximately 33 million net tons.