US Steel Buys Canadian Rival

$1.1B deal for Stelco consolidates market, makes Pittsburgh giant fifth largest
By Jason Farago,  Newser Staff
Posted Aug 28, 2007 6:02 AM CDT
A truck leaves the Stelco plant in Hamilton, Canada, Monday, Aug. 27, 2007. United States Steel Corp. is buying Canadian steel maker Stelco Inc. for about $1.1 billion in a move expected to bolster its...   (Associated Press)
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(Newser) – US Steel's agreement to buy Canadian competitor Stelco for $1.1 billion, making it the world's fifth-largest steelmaker, is the company's second major acquisition this year, but not necessarily the last, CEO John Surma said yesterday. In the face of breakneck growth by Indian and Russian steel producers, the Pittsburgh giant has sought to consolidate the North American market to stay competitive.

US Steel's efforts have made the domestic steel industry more resistant to swings in price. Combined with a weak American dollar, which has made exports more competitive, American steel manufacturing healthier than ever, Surma told analysts yesterday. The proof: US Steel's share price is up 27% for the year.