Joly asks Competition Bureau to probe Cleveland-Cliffs Stelco deal

Industry Minister Mélanie Joly is asking the Competition Bureau to examine whether Cleveland-Cliffs’ rationale for acquiring Stelco Inc. was conducted in bad faith.

The minister's request

In a letter to acting competition commissioner Jeanne Pratt, Joly points to Cleveland-Cliffs chief executive Lourenco Goncalves’ comments in a CBC interview on Oct. 27, in which he said he bought Stelco because he could not afford to have it “flooding the market here in the United States to the detriment of my own company.”

Joly says the CEO made similar claims to CBC News last month, indicating the company’s disregard for fair competition in the Canadian market.

She says the Competition Bureau “may wish to thoroughly examine” the parent company’s conduct and whether it warrants enforcement action under the Competition Act.

“This type of conduct is highly questionable and may be reviewable under the Competition Act,” Joly said in her letter.

Layoffs and employment commitments

Joly’s letter comes as Ottawa’s 15-day deadline ends for Cleveland-Cliffs to address alleged violations of binding employment commitments it made when it purchased Stelco back in 2024.

The minister had asked the company to address its alleged violations, prove it has not broken its commitments or explain why it has failed to meet them.

Stelco announced plans on Sept. 28 to lay off up to 500 workers at its Hamilton and Nanticoke, Ont., steel mills, citing U.S. tariffs, weak demand for Canadian steel and competition from imported steel products.

However, Cleveland-Cliffs and the union have recently confirmed only 175 workers have been laid off so far, all in Hamilton.

Cliffs has classified the layoffs as “temporary” and has reduced its estimates for the total number of workers that could be laid off. Mr. Goncalves said last week that 175 people have been laid off so far in Canada, and no more cuts are planned.

Why it matters

The letter is the latest move by the federal government to ratchet up pressure on Cleveland-Cliffs to recall laid-off steel workers in Hamilton. Joly has alleged that Cliffs is in violation of legally-binding commitments it made at the time of the Stelco acquisition around specific employment levels, and has warned the company that the government may sue Cliffs, which could force it to pay financial penalties or divest Stelco.

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Sources

• ctvnews.ca: Joly asks Comp Bureau to probe Stelco deal
• thestar.com: CP NewsAlert: Joly asks Comp Bureau to probe Stelco deal after CEO comments
• theglobeandmail.com: Joly asks Canada’s Competition Bureau to probe comments from Cliffs CEO - The Globe and Mail

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.