Dofasco and ThyssenKrupp have announced they have reached an agreement for ThyssenKrupp to make an offer to acquire all of Dofasco’s outstanding common shares in a friendly, all-cash transaction for about CAD 4.8 billion (EUR 3.5 billion), or CAD 61.50 per common share. Dofasco’s Board of Directors has resolved to unanimously recommend to Dofasco shareholders that they accept the offer. ThyssenKrupp currently owns no shares in Dofasco.
Hamilton, Ontario will become ThyssenKrupp’s new North American headquarters for carbon steel. Dofasco’s outstanding North American footprint provides a complementary fit with ThyssenKrupp’s existing steel operations and its growth strategy in North America.
There is very little overlap between the two companies, therefore, the managements of Dofasco and ThyssenKrupp do not anticipate restructuring involving employees or operations, as a result of this transaction.
The acquisition of Dofasco will strengthen ThyssenKrupp’s presence in the NAFTA steel market. This acquisition represents a continuation of ThyssenKrupp’s internationalization strategy in high-quality flat steel, providing direct access to attractive customer groups such as the automobile and packaging industries. Together the two companies will have the strength of increased size, scale and geographic reach.
