In a release Monday, the storied Hamilton, Ont.-based steelmaker said it agreed to sell all issued and outstanding common shares for $70 per share to Ohio-based Cleveland-Cliffs, one of North America’s largest steel manufacturers.
“I know that Cliffs will continue to build upon the excellent work and life environment we have created for all of our employees, and continue to be a reliable supplier to our valued customers, while maintaining Stelco’s stature and reputation in Canada and maintaining our Canadian national interests,” said Stelco chief executive Alan Kestenbaum.
As part of the agreement, Stelco’s headquarters will stay in Hamilton and the company will maintain “significant employment levels” in Canada and include Canadians in its management team.
Cleveland-Cliffs CEO Lourenco Goncalves said Kestenbaum had managed to turn an “underperforming asset under previous ownership into a very cost-efficient and profit-oriented company.”
The deal is expected to close in the fourth quarter of 2024.
Stelco’s ownership history
This will not be the first time Stelco has come under foreign ownership. U.S. Steel acquired the 114-year-old company in 2007, right before the global financial crisis set off a recession. In 2014, America’s second-largest steelmaker put its Canadian operations into creditor protection.
Kestenbaum took the reins in 2017 (aside from a one-year departure around 2019), upgraded Stelco’s blast furnaces and, via acquisitions, steered the company toward more steel output for automakers.
United Steelworkers international president David McCall supported the sale to Cleveland-Cliffs, calling it “great for the resilience of manufacturing and union jobs” in North America.