U.S. Steel, Stelco merger clears Canadian regulatory hurdle

By Lisa Kerner

Charlotte, N.C., Oct. 29 - The Canadian Minister of Industry, under the Investment Canada Act, approved United States Steel Corp.'s acquisition of Stelco Inc., it was announced on Monday.

U.S. Steel made several commitments under the Investment Canada Act, including funding of Stelco's main pension plans, increased production in Canada and significant capital expenditures at Stelco's facilities, a company news release stated.

"We are pleased with this news, which confirms that the Minister of Industry is satisfied that U.S. Steel's acquisition of Stelco will be of net benefit to Canada," U.S. Steel chairman and chief executive officer John P. Surma said in the release.

"U.S. Steel brings the financial strength, operating experience and advanced research and technology capability that are critical for the continued success of the Stelco facilities," Surma added.

All required regulatory clearances have now been obtained; Stelco shareholders approved the transaction at a special meeting on Oct. 26.

It was previously reported that on Aug. 27, U.S. Steel agreed to buy Stelco for C$38.50 per share.

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

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