Report says potential buyers floating Essar Steel Algoma/U.S. Steel Canada combo

Essar Steel Algoma's parent company - a global fund backed by India’s Essar Capital Limited - are reported to be one of the companies interested

Essar Steel Algoma is pictured in this file photo. Kenneth Armstrong/SooToday

Bloomberg TV Canada is quoting unnamed sources, who say some of the companies bidding for U.S. Steel Canada are looking at combining the company with Essar Steel Algoma.

Both of the steelmakers are currently under creditor protection and both are up for sale.

The reported bidders for U.S. Steel Canada are Essar Steel Algoma’s parent in India, New York-based mining firm Bedrock Industries and ERP Compliant Fuels.

Bloomberg also reports in a story posted Monday that ‘a consortium of banks led by Deutsche Bank AG’ is said by the unnamed sources to be considering a bid for Essar Steel Algoma.

Essar Steel Algoma is currently operating thanks to a USD $200-million debtor-in-possession financing arrangement with what the company described as ‘a syndicate of lenders’ led by Deutsche Bank AG.

The deadline for bids to be submitted under U.S. Steel Canada’s sale process under its creditor protection arrangement was Monday.

Essar Steel Algoma began its sale and investment process under the Companies' Creditors Arrangement Act on February 11.