Seven years after it climbed out of creditor protection and embarked on a major turnaround, Stelco Holdings Inc. said it will be acquired by Cleveland-Cliffs Inc. in a $3.4-billion deal.
In a release Monday, the storied Hamilton, Ont.-based steelmaker said it agreed to sell all issued and outstanding common shares for $70 per share to Ohio-based Cleveland-Cliffs, one of North America’s largest steel manufacturers.
“I know that Cliffs will continue to build upon the excellent work and life environment we have created for all of our employees, and continue to be a reliable supplier to our valued customers, while maintaining Stelco’s stature and reputation in Canada and maintaining our Canadian national interests,” said Stelco chief executive Alan Kestenbaum.
As part of the agreement, Stelco’s headquarters will stay in Hamilton and the company will maintain “significant employment levels” in Canada and include Canadians in its management team.
Cleveland-Cliffs CEO Lourenco Goncalves said Kestenbaum had managed to turn an “underperforming asset under previous ownership into a very cost-efficient and profit-oriented company.”
The deal is expected to close in the fourth quarter of 2024.
This will not be the first time Stelco has come under foreign ownership. U.S. Steel acquired the 114-year-old company in 2007, right before the global financial crisis set off a recession. In 2014, America’s second-largest steelmaker put its Canadian operations into creditor protection.
Kestenbaum took the reins in 2017 (aside from a one-year departure around 2019), upgraded Stelco’s blast furnaces and, via acquisitions, steered the company toward more steel output for automakers.
United Steelworkers international president David McCall supported the sale to Cleveland-Cliffs, calling it “great for the resilience of manufacturing and union jobs” in North America.
“Cleveland-Cliffs has a proven track record of making sure the union always has a seat at the table, and this deal was no different,” the union head said in a release.
About 83 per cent of Stelco’s 2,400 workers were unionized as of December.
Mergers and acquisitions in the industry have made headlines over the past year, as producers look to consolidate in response to cheap imports from China.
In August, Cleveland-Cliffs made a hostile, US$7.25-billion offer for U.S. Steel composed of cash and stock. But U.S. Steel rejected the bid and opted instead for a US$14.9-billion buyout by Japan’s Nippon Steel, one of the largest steelmakers in the world by production volume.
That agreement is pending review by the Committee on Foreign Investment in the United States, an inter-agency committee.
Several news outlets also reported last year that Stelco and an unnamed partner were considering an offer for U.S. Steel.
Stelco runs two sites in Ontario: a steel mill at Lake Erie Works and a coke plant and finishing operation at Hamilton Works.
National Bank analyst Maxim Sytchev called the Cleveland-Cliffs deal “a logical industry development.”
“We fully expect the deal to be reviewed, but one would assume that the backdrop would be less contentious than U.S. Steel / Nippon, given the already integrated nature of the North American supply chain, NAFTA, etc.,” he said in a note to investors.
This report by The Canadian Press was first published July 15, 2024.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
