Market Segment
Essar Steel Algoma Enters Phase II of Sales Process
Written by Sandy Williams
April 5, 2016
Essar Steel Algoma announced that it has entered Phase Two of the Sale and Investment Solicitation Process. The company reports receiving “several bids” in the first phase of the sale.
During the second phase of the process, qualified bidders will be invited to a management presentation and participate in on-site tours and inspection of the facilities. Bidders may meet with representatives of the USW and retirees under supervision of the court Monitor. All discussions are confidential.
Binding offers by Phase Two bidders are due by 5:00 pm on the yet to-be-determined bid deadline that is anticipated to be sometime in mid-May. The SISP timeline stipulates that a sale or investment plan be concluded by August 31, 2016.
There have been rumors that some bidders are considering a purchase of both Essar Steel Algoma and US Steel Canada. A consolidation of the two would create a steel entity capable of more than 5 million tons of annual production and the fifth largest steel producer in North America.
Sandy Williams
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