Ipsco shareholders endorse takeover offer
Ipsco Inc. said Monday that its shareholders have accepted the takeover offer of Swedish firm SSAB Svenskt Stal AB.
In a release, Ipsco said about 99 per cent of the votes cast by shareholders at a meetingMonday morning were in favour of the Swedish offer of $160 US per share in cash.
The companies said they have received all regulatory approvals necessary to complete the transaction, and now require the approval of the Ontario Superior Court of Justice.
Amid a wave of foreign purchases of Canadian steel companies, Ipsco unveiled the takeover deal with Svenskt Stal on May 3.
Ipsco has its roots and major Canadian operations in Regina, but is now headquartered in Lisle, Ill. The company is one of North America's largest producers of steel plate and pipe.
Steve Hunt, United Steelworkers'Western Canada director, said the result of Monday's vote was not unexpected and the union is prepared to work with the new ownership.
"In a globalized economy, and the steel industry in particular, this acquisition comes as no surprise," said Hunt. "While it is alarming that Canada has little inclination to control foreign ownership of our industries and resources, our union is responding to these trends by forming global alliances with workers and their unions all over the world.
"We anticipate and expect SSAB to honour the collective agreements we have in place with Ipsco in Regina and Calgary," he said in a release.
Shares of Ipsco finished Monday down $1.09 at $166.41 on the TSX.