US Steel Canada on Wednesday rejected a buyout offer from Ontario Steel Investment Ltd, a group that includes shareholders of Essar Global, saying it was not considering further proposals by Essar, which had been eliminated from the sale process.
The offer, made on Tuesday, included the assumption of C$954 million ($734 million) in liabilities under US Steel Canada’s pension plan and a commitment to provide $25 million toward post-employment benefits for US Steel Canada’s staff.
US Steel Canada, which has been in creditor protection since 2014, said Essar was rejected as a potential buyer of the business earlier this year following discussions with stakeholders including the Ontario government.
It cited a failure by Essar, the Indian energy and resources conglomerate, to provide evidence of its financial ability to own and operate the company and an inability to gain the support of all stakeholders including the provincial government.
The United Steelworkers (USW) union has criticized US Steel Canada’s decision and Essar later re-entered the bidding process through the Ontario Steel investment vehicle.
US Steel Canada, which employs nearly 2,000 workers in Ontario and has the capability to produce 2.6 million tons of steel annually, is a former unit of United States Steel Corp.