Canada Steel Mills Reject Essar Global

It appears that Essar Global has been eliminated from the bidders vying for the assets of US Steel Canada. The Hamilton Spectator is reporting that the USSC board of directors has rejected a bid from Essar Global because of concerns that the company lacks the financial resources to complete a purchase. Essar was rejected as a bidder by Essar Steel Algoma for the same reason.

US Steel Canada cannot comment on specific details on the sales process due to a non-disclosure agreement. USSC spokesperson Trevor Harris, however, confirmed that “certain parties previously involved are no longer involved in the sales and investor solicitation process, following a conclusion they would not be able to complete a qualified bid that could result in a going-concern solution.”