# Algoma Steel completes $1.7B SPAC merger, gains $306M for EAF transformation

Algoma Steel Group Inc. completed a $1.7 billion business combination with Legato Merger Corp., a SPAC. The transaction provides Algoma with $306 million of cash for strategic investments, including its proposed transformation to electric arc furnace steelmaking.

- Type: Investment
- Announced: 2021-10-19
- Where: Sault Ste. Marie, Ontario, Canada
- Value: $1.70B
- Status: completed
- Capacity: 3.7 million tons per year raw steel
- Products: hot and cold rolled steel sheet and plate
- Sectors: [Steel and Metal Products](https://endata.com/sectors/steel-metal-products.md)

## Companies

- [Algoma Steel Inc.](https://endata.com/companies/15428.md)
- [Legato Merger Corp.](https://endata.com/companies/55347.md) (partner)

## Sources

- [paulweiss.com](https://www.paulweiss.com/insights/client-news/algoma-steel-completes-17-billion-business-combination-with-spac), 2021-10-19: "The transaction is one of the most successful SPAC transactions of 2021 with almost no shares of the SPAC being redeemed, and provides Algoma with $306 million of cash for strategic investments, including Algoma’s proposed transformation to electric arc furnace steelmaking."
- [algoma.com](https://www.algoma.com/news/algoma-steel-announces-final-investment-decision-for-electric-arc-steelmaking/), 2021-11-11: "We believe that today’s strategic decision to transition Algoma to electric arc steelmaking represents a win for all of our stakeholders."

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Data from Endata (https://endata.com/). Announcements are summarized from public sources and may be incomplete; check the linked originals.