Essar group acquiring Canadian steelmaker Algoma

Essar group acquiring Canadian steelmaker Algoma

India based steel company Essar Group has announced that they have signed on an agreement to acquire Canadian steelmaker Algoma for 1.58 billion dollars.

With this deal, they aim to enhance their presence in the North American market. Shashi Ruia, chairman of Essar Global Ltd. spoke on this deal announcement: “Algoma provides us with an excellent platform for the Canadian and North American markets.”

This acquisition deal would however require approval from the Algoma’s shareholders. They would need at least 66 percent of the votes cast in favor of the deal.

Algoma is based in Ontario and they had a shipping capacity of 2.4 million tons in 2006. They are present in fields like building plate steel for ship building as well as products for North American car makers such as Ford and General Motors.