Hamilton’s Stelco secures final takover by U.S. Cleveland-Cliffs Inc.

Hamilton steelmaker Stelco has secured the final approvals needed for the takeover by U.S. steel manufacturer Cleveland-Cliffs Inc.

An announcement released Wednesday morning reading that with all regulatory approvals completed, the deal is set to close on Friday.

Cleveland-Cliffs announced its agreement to acquire Stelco back in July, in a transaction valued at $3.85 billion.

Minister of Innovation, Science and Industry François-Philippe Champagne released a statement Wednesday morning approving the investment of Cleveland-Cliffs acquiring all outstanding shares of Stelco.

“Foreign investment encourages economic growth, innovation, and employment opportunities in Canada,” said Champagne in the statement. “At the same time, the Government of Canada has a responsibility to make sure the most significant foreign investments will benefit Canadians. ”

The statement reads that Champagne’s approval is contingent on a significant package of binding, five-year-long undertakings to support Cleveland-Cliffs’ net benefit case.

Some of the conditions outlined in the review process include keeping Stelco’s brand by carrying on operations under the name “Stelco, A Cleveland-Cliffs Company.”

Stelco’s head office in Hamilton will be maintained to manage Stelco’s day-to-day operations.

The steelmaker will continue to employ at least the same number of unionized employees and the majority of non-unionized employees as were employed when the agreement was announced.

Cleveland-Cliffs must also honour all existing collective bargaining agreements and Stelco employee benefit and pension commitments.

The binding undertakings will also push the new owners to keep Stelco’s greenhouse gas emissions low – at least 25 per cent below the global average for integrated steel mills.

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