Cleveland-Cliffs CEO confident that Canadian government will approve purchase of Stelco
Cleveland-Cliffs Inc. chief executive officer Lourenco Goncalves is expressing confidence his business will win government approval for its acquisition of Hamilton-based Stelco, which was announced on Monday.
According to reports from the Globe and Mail and Financial Post, Goncalves told analysts on a conference call that the company has been reaching out to federal and provincial officials to win support for the transaction.
Cleveland-Cliffs, the U.S.’s second largest steelmaker, announced on Monday it has agreed to acquire Stelco in a transaction that values the Canadian business at $3.4 billion. The deal would need to get approval from the federal government at a time when foreign acquisitions are being more closely scrutinized.
Earlier this month, the Canadian government said it would ban all foreign investment in critical minerals, except under the “most exceptional of circumstances.”
Here is the Globe report and the Financial Post report on the regulatory challenges for the Stelco deal.
