U.S. Steel Canada to be sold, transitioned to Bedrock Industries

By Caroline Salls

Pittsburgh, Nov. 1 – United States Steel Corp. agreed to terms with Bedrock Industries Group LLC regarding the sale and transition of ownership of U.S. Steel Canada, Inc. to Bedrock, according to a news release.

The transaction is subject to the completion of customary definitive documentation and requisite court and other approvals.

As part of U.S. Steel Canada’s Companies’ Creditors Arrangement Act case, U.S. Steel said it submitted C$2.2 billion of secured and unsecured claims.

If the Bedrock transaction is approved by the Ontario Superior Court of Justice and ultimately closes, U.S. Steel will receive roughly $126 million in satisfaction of its secured claims, including interest, and unsecured claims.

The proposed terms also include an agreement to provide mutual releases among key stakeholders, including a release of all claims against U.S. Steel related to environmental, pension and other liabilities, the release said.

As part of the proposed transition in ownership, U.S. Steel will continue to provide some shared services to U.S. Steel Canada and will enter into an agreement to supply U.S. Steel Canada with all of its iron ore pellets requirements through 2021.

Hamilton, Ont.-based U.S. Steel Canada’s operations are located at Lake Erie Works, a fully integrated steelmaking facility, and at Hamilton Works, a cokemaking and finishing facility.

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