Canadian go-ahead for Essar Global

Essar Global has received approval from the Canadian government for acquisition of Algoma Steel for over Rs 7,097.94 crore as required under the country's foreign investment rules.

The company obtained the approval through its wholly owned subsidiary Essar Steel Holdings under the Investment Canada Act.

The regulators approved the deal after Essar agreed to keep the Canadian steel company's head office in Sault Ste Marie, Ontario and ensured a boost in annual capital expenditures.Essar Global Chairman Shashi Ruia said he was "delighted with the approval."

He said the "acquisition will be of enormous benefit to both his company and Algoma, as well as the City of Sault Ste Marie, the province of Ontario and Canada as a whole."

The company has also agreed for continued prominent and substantial role of the existing management of Algoma.

"Essar's acquisition of Algoma will enable us to manage new growth opportunities and migration of the best technological and engineering practices in both organisations," said Denis Turcotte, who will continue as CEO of Algoma.