Steel Mills

Stelco shareholders OK $2.5B sale to Cliffs

Written by Michael Cowden

September 16, 2024

Stelco shareholders voted overwhelmingly on Monday to OK the $2.5-billion sale of the Canadian flat-rolled steelmaker to Cleveland-Cliffs.

Indeed, 99.97% of those who cast ballots voted to approve the deal, according to the Hamilton, Ontario-based steelmaker.

Cleveland-based Cliffs said the shareholders’ approval meant the pact remained on track to close in the fourth quarter, pending other closing conditions.

 “The overwhelming approval from Stelco shareholders confirms the strong support of this transaction,” Cliffs Chairman, President, and CEO Lourenco Goncalves said in a statement.

“Together with Stelco and the USW in Canada, Cliffs will become an even stronger and better North America-based steel producer, which will benefit both Canada and the United States,” he added.

Stelco is expected to continue as a wholly-owned subsidiary of Cliffs.

In July, Cliffs announced plans to acquire Stelco with the support of the United Steelworkers (USW) union.

Stelco CEO Alan Kestenbaum elaborated on the deal and his plans for the future during an exclusive interview with SMU’s David Schollaert last month at SMU’s Steel Summit in Atlanta.

Kestenbaum said he wasn’t looking to sell the business. But that it was the right thing to do for shareholders.

He also suggested that there might be new chapters to his career in steel: “I love this business, and why I’m going to continue to stay in it is exactly that – it’s identifying opportunities, coming up with a strategy, and executing.”

Michael Cowden

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

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