Terms of its 2007 Canadian takeover under scrutiny
In Canada’s steel capital, U.S. Steel’s decision to shut down operations, laying off 2,190 indefinitely, is sparking questions about enforcing promises the American company made when it took over Stelco in 2007. The Hamilton Spectator reports that the $1.9-billion acquisition was allowed by Ottawa with conditions—notably that U.S. Steel would “maintain employment levels.” Can the government make that provision stick in a global recession? Industry Minister Tony Clement has vowed to review the company’s obligations under federal foreign investment rules.