Essar Global subsidiary responds to U.S. Steel rejection

 A company set up by Essar Global to reclaim ownership of Essar Steel Algoma and acquire U.S. Steel Canada properties in Hamilton and Nanticoke, has issued the following statement.

Earlier today, U.S. Steel Canada announced it was rejecting Essar Global's advances, claiming the Indian multinational lacks the financial wherewithal to close the deal.

Essar Global is making its play through a newly formed entity named Ontario Steel Investments Ltd., which intends to do business as Ontario Steelworks.

Interestingly. the following Ontario Steelworks statement makes no reference to the status of its pending bid for Essar Steel Algoma.

However, one source close to the restructuring talks advises SooToday that Essar Global's interest in Essar Steel Algoma remains unchanged by today's news.

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Ontario Steelworks is disappointed by U.S. Steel Canada’s rejection of our revised offer for the company.

We believe our offer is compelling to U.S. Steel Canada’s key stakeholders as it ensures the retirement benefits earned by the company’s current and retired employees will not be eliminated through the [Companies' Creditors Arrangment Act] process.

Ontario Steelworks is ready and able to demonstrate our financial wherewithal by immediately making a substantial deposit backing our bid, which we have communicated to the company.

We believe our offer has support of the employees of U.S. Steel Canada as well as the local communities of Hamilton and Nanticoke.

We are eager to meet with the Province of Ontario to discuss the merits of our offer as well as the investments we plan to undertake if we are successful in acquiring U.S. Steel Canada.

Despite U.S. Steel Canada’s rejection, we remain committed to the process and hope the company will allow us to address the concerns raised in their released statement.

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