US Steel Canada is sceptical of the “... unsolicited, purported” offer for the company’s assets by Essar Global-led Ontario Steel Investments.

The bid, which includes the assumption of almost CAD 1 billion ($766 million) in debt and CAD 25 million annually to a pension and benefits fund, is similar to an earlier rejected offer from Essar Global. Ontario Steel Investments is made up of Essar Global shareholders and other interested parties, Kallanish notes.

Essar Global has been blocked from officially participating in US Steel Canada’s sales and investment solicitation process due to an inability to “… provide satisfactory evidence of its financial ability to own and operate the company,” US Steel Canada says.

Essar Global’s Essar Steel Algoma is also currently in creditor protection and undergoing a similar sales and investment solicitation process.

“Yesterday's communication from Essar's consortium includes terms that are substantially similar to what was previously rejected by the company and the province,” the company says. “US Steel Canada will avoid any distraction that could be detrimental to the company, its employees and pensioners, at a time when the restructuring process is progressing, and negotiations with the current bidders continue.”