The Ontario Steel Investment group with shareholders from Essar Global had their buyout proposal rejected by United States Steel Canada on Wednesday. Ontario Steel said that they have no intention of going ahead with the proposal by Essar, as they have already been cut off from the sale procedure.
The offer included coverage to ensure the staff of U.S. Steel Canada had post-employment benefits which is covered by 25 million Canadian dollars and a pension plan. However, all of this was overlooked as Essar was not accepted as a potential buyer for U.S Steel at the starting of the year although shareholders along with the government of Ontario met to talk about it.
Essar cited failure to give proof of its ability to financial run and manage the company, and it’s unsuccessful efforts in getting the stakeholders on their side as well as the local authorities. Another trial to re-enter the bidding process for U.S Steel Canada’s operation in Ontario, Hamilton and Nanticoke was attempted by Essar.
“It’s ridiculous, especially when U.S. Steel Canada took just a day to think about it. This is going to cause people in Hamilton to be extremely upset and it’s irresponsible,” said the president of USW Local 1005 in Hamilton, Gary Howe while he was commenting about U.S. Steel Canada’s recent rejected offer when at an interview.
U.S. Steel Canada have over 2,000 employees working for them in Ontario and are able to provide 2.6 million ton of steel year. They were also a previous unit of United States Steel Corp X.N.