U.S. STEEL acquires Stelco.(FERROUS)

United States Steel Corp., Pittsburgh, has entered into an agreement to acquire Stelco Inc., a steelmaker based in Canada, for around $1.1 billion. Shareholders owning more than 76 percent of the shares in Stelco have entered agreements supporting the acquisition by U.S. Steel.

U. S. Steel says it expects the Stelco deal to strengthen its position as a supplier of flat-rolled steel products to the North American market.

In addition to integrated steel plants in North America, Stelco also owns several joint venture interests, including iron ore operations in the U.S. and Canada, and a 60 percent interest in Z-Line, a hot-dip automotive-quality galvanizing line. After the acquisition, U. S. Steel will have about 33 million net tons of annual raw steel capacity.

The acquisition is subject to review by U.S. and Canadian regulatory authorities and other customary conditions and is expected to close before the end of this year, according to U.S. Steel.

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