U.S. Steel acquires, renames Stelco

By Lisa Kerner

Charlotte, N.C., Oct. 31 - United States Steel Corp. completed its acquisition of Stelco Inc. and renamed the company U. S. Steel Canada Inc.

Stelco shareholders approved the Aug. 27 merger agreement on Oct. 26.

Stelco shareholders have the right to receive C$38.50 per share. Warrants to acquire Stelco common stock have been converted into the right to receive C$27.50.

U.S. Steel said it financed the $1.2 billion acquisition cost and refinanced $750 million of existing Stelco debt through a combination of cash on hand, borrowings under a $500 million three-year term loan and a $400 million one-year term loan, and $400 million of sales under a receivables purchase agreement that expires in 2010.

"This acquisition expands the footprint of our North American flat-rolled operations with facilities on both sides of the Great Lakes to better respond to customer needs, including the ability to process U. S. Steel Canada slabs at other U. S. Steel facilities," U.S. Steel chairman and chief executive officer John Surma said in a company news release.

U.S. Steel Canada's management team includes president and general manager Douglas R. Matthews and vice president and chief financial officer William C. Harrison.

Matthews was previously with U. S. Steel Serbia while Harrison is the former controller at Great Lakes Works.

U.S. Steel is an integrated steel producer based in Pittsburgh. Stelco is a Hamilton, Ont., steel company.

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