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Oppose Schemes to Pay the Rich! Essar Steel Algoma Completes Merger with LegatoEssar Steel Algoma Inc with steel facilities in Sault Ste. Marie Ontario employs 2,700 workers who annually produce 2.8 million tonnes of hot and cold rolled steel sheet and plate products. On October 19, Algoma Inc announced the completion of a merger with the international investment cartel Legato. This combines the U.S.-owned Essar Steel Algoma with the New York-based ownership of Legato Merger Corp.
While steelmaking is essential for modern economies and is central to manufacturing, air, rail and road transportation, home and commercial construction, infrastructure and defence, the three major steel producers in Canada are owned and controlled outside the country. Stelco in Hamilton and Algoma are owned by U.S.-based global investors and ArcelorMittal Dofasco in Hamilton is held mainly by Indian and European ownership. No modern economy can be considered self-reliant and in control of its economic affairs without independent national control of its steel industry. This absence is particularly galling for Canada, which has all the raw material, energy, scientific expertise and skilled workers necessary for a thriving steel sector capable of contributing to an overall self-reliant stable economy under the control of Canadians and serving their needs.
Canada's ruling elite and governments do not address this problem from the point of view of building a stable self-reliant steel sector under the control of Canadians to serve the needs of Canada's economy first and foremost and engaging in international trade for mutual benefit. Instead they allow the foreign ownership cartels to use Canada's steel facilities for their private interests including jumping into bankruptcy protection, closing facilities and selling off bits and pieces or the whole when it suits them. On top of this, Canadian governments give these foreign private owners millions of dollars in public funds and favourable deals on infrastructure such as a low price for electricity. Canadians, particularly those employed in the steel sector find the situation disturbing and in need of a new direction. The global wheeling and dealing with Canada's steel mills and all this public money pouring into the pockets of foreign oligarchs does not bring stability to the steel sector nor solve the problem of Canadians having control over their steel industry as an important base of a stable secure self-reliant economy. NoteLegato Merger Corp. is a blank check company organized for the purpose of effecting a merger, capital stock exchange, asset acquisition or other similar business combination with one or more businesses or entities. Legato's common stock, units and warrants trade on the Nasdaq Capital Market under the symbols "LEGO," "LEGOU" and "LEGOW," respectively.
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The
India-based Essar global cartel, which had bought Algoma Steel in 2007,
reportedly hived off the Algoma steelmaking facilities to U.S.
investors in 2017 although not much is known of the transaction as it
was classified as a closed private affair. The current merger of the
steel facilities with Legato reportedly gives the Essar Steel Algoma
U.S. owners over $1.1 billion worth of new shares in Legato and a net
gain of $306-million. The former secret private ownership shares of
Algoma will now become openly traded shares on the NASDAQ and Toronto
stock exchanges.
The
lack of Canadian control is particularly disturbing given that Canada's
steel sector appears very unstable suffering regular crises within
almost continuous boom and bust cycles. Algoma Steel itself has been in
bankruptcy protection under the 