US Steel Canada rejected a bid from Essar Global, the parent company of Essar Steel Algoma, according to local media.
The United Steelworkers union condemned the decision, with USW Ontario’s director Marty Warren stating that “This is a potentially devastating decision for thousands of workers, pensioners and the communities that are most affected by the restructuring of our steel industry,” adding that Essar Global is “more committed than other bidders to protect jobs, pensions and retiree benefits.”
US Steel Canada has been operating under creditor protection since 2014, and last week, Essar Steel Algoma signed an asset sale deal with private equity firm KPS Capital Partners; KPS is one of the two firms still vying to buy US Steel’s operations in Hamilton and Nanticoke.