The Canadian government has the right to fine U.S. Steel for breaking job-protection promises made when it bought Canadian steelmaker Stelco, the Supreme Court of Canada ruled on Thursday, Reuters reported.
By refusing to hear an appeal by U.S. Steel, the court blocked an attempt by the steelmaker to overturn Canadian investment law, under which the government is seeking to levy C$10,000 a day in fines, Reuters said.
Reuters said the government wants the fines applied from November 1, 2008, when it determined U.S. Steel broke undertakings made to the government when it approved the company's takeover of Stelco. That would amount to more than C$11 million (US$10. 5 million) plus any interest applied.
Pittsburgh-based U.S. Steel booked over US$5 billion in revenue in the third quarter, but only US$22 million in net income, largely due to weak economic growth in both Europe and North America.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
