U.S.-based Cleveland-Cliffs gets final approval from federal government to buy Stelco

The federal government has given the final approval for the acquisition of Hamilton steelmaker Stelco Holdings Inc. byU.S.-based Cleveland-Cliffs Inc.

In a statement released on Wednesday,Minister of Innovation, Science and Industry Franois-Philippe Champagne said he approved the investment "following an extensive reviewunder the Investment Canada Act."

Champagne said in the statement the approval is contingent on a five-year commitment that included maintaining Stelco's head office in Hamilton, carrying operations under the name "Stelco, a Cleveland-Cliffs Company."

Additionally, the company is also required to continue to employ at least the same number of unionized and most of the non-unionized workers, and honouring existing collective bargain agreements as well as pension and benefit commitments.

Ron Wells, president of the USW Local 1005 that represents Hamilton Stelco workers, said, "there needs to be transparency regarding any legal commitments around job protections, capital investments, production levels and environmental sustainability.

"We believe we, the workers, are in the best position to ensure these commitments are fulfilled."

He was echoing a Sept. 25 letter to Champagnewritten by the USW's national director Marty Warren expressing his concern about the acquisition.

The letter expressed Warren's concerns given past "negative effects of previous foreign takeovers."

"We must ensure that the same mistakes are not repeated,"Warrensaid in the letter.

"It is essential that any commitment, whether it concerns investment, job security, pension protection or environmental sustainability, be made public and enforceable under the Canada Investment Act."

The $3.4 billion deal closes Nov. 1, according to a press release by Cleveland-Cliffs.

In July, a Stelco news release said Cleveland-Cliffs will continue Stelco's current community commitments.

The company will also retain its partnership with the Hamilton Tiger-Cats and Forge FC, and its 40 per cent equity interest and the master lease of Tim Hortons Field.