Canada’s industry minister is calling on the country’s competition watchdog to examine whether Cleveland-Cliffs Inc. bought Stelco Holdings Inc. under false pretenses, after the U.S. steelmaker’s chief executive said publicly that the deal was meant to neutralize a rival.
Mélanie Joly said Friday that she had written to the Commissioner of Competition asking for a review of whether the conduct of Cleveland-Cliffs ran afoul of the Competition Act. “If negotiations and acquisition were conducted in bad faith, Canadians deserve to know. The company needs to face the consequences,” she said in a statement.
The request follows remarks by Cleveland-Cliffs CEO Lourenco Goncalves on CBC’s Power & Politics, in which he said: “I bought Stelco because I could not afford anymore having Stelco flooding the market here in the United States to the detriment of my own company.” Joly described the comment as a “shocking admission” and said she had consulted her department’s lawyers about possible consequences. “It is the commissioner’s responsibility to examine this matter thoroughly and, if warranted, take the appropriate measures,” she said.
The letter lands on the day a 15-day deadline set by Ottawa for Cleveland-Cliffs to respond to allegations that it breached its job commitments expired. According to the government, the company agreed at the time of the 2024 acquisition to keep unionized employment at Stelco at 2024 levels through 2029. Cleveland-Cliffs says it is in “full compliance” with its obligations under the Investment Canada Act.
Stelco announced on Sept. 28 that it would cut as many as 500 positions at its mills in Hamilton and Nanticoke, Ont., citing U.S. tariffs, soft demand for Canadian steel and competition from imports. The company and the union have since confirmed that 175 workers have been laid off so far, all in Hamilton.
ItemDetailBuyerCleveland-Cliffs Inc.TargetStelco Holdings Inc.Deal completed2024Announced layoffsUp to 500Layoffs confirmed to date175, all in HamiltonEmployment commitmentUnionized headcount held at 2024 levels through 2029Federal response deadline15 days, expiring Friday
Note: Layoff figures from Stelco’s Sept. 28 announcement and subsequent confirmations by the company and the union; employment commitment as described by the federal government.
The dispute puts a spotlight on how Ottawa polices foreign takeovers of Canadian industrial assets at a time when steel producers on both sides of the border are contending with tariffs and weak pricing. A Competition Bureau inquiry could expose Cleveland-Cliffs to further scrutiny of its conduct during the transaction, while the separate Investment Canada Act process examines whether the company honored the conditions attached to the deal’s approval.
Joly’s move also raises the stakes for Goncalves, who has built a reputation for blunt commentary on trade and steel markets. The minister said the commissioner should determine whether the parent company’s behavior warrants enforcement action under the Competition Act.