Algoma Steel Strikes Merger Agreement with SPAC Firm

SEATTLE (Scrap Monster): Canadian steelmaker Algoma Steel has entered into a definitive merger agreement with a U.S. special purpose acquisition company (SPAC) firm Legato Merger Corp. As per terms of the agreement, Algoma will list its common shares on the NASDAQ exchange as well as the Toronto Stock Exchange.

Commenting on the agreement, Michael McQuade, CEO of Algoma Steel stated that the proposed transaction will provide the company with ample investment capital and an enhanced capital structure to support transformative investments in future. He also hinted that the companies are evaluating the possibilities for a major investment in electric arc furnace (EAF) steelmaking.

Eric Rosenfeld, Legato chief SPAC officer said that it is excited to partner with Algoma’s impressive management team.

The transaction is expected to close during the third quarter of 2021, subject to customary approvals, including approvals from the NASDAQ and Toronto stock exchanges as well as the approval of Legato stockholders. It must be noted that the Legato Board of Directors have already approved the agreement and recommended that the stockholders approve the same. Algoma has already received approval for the merger agreement, from both board of directors and shareholders.