Business · Companies · 1 hr ago
Joly asks Competition Bureau to investigate Stelco's parent company
Industry Minister Mélanie Joly has asked Canada's Competition Bureau to investigate Cleveland-Cliffs, the U.S. company that owns Stelco.
CEO Lourenco Goncalves said he bought Stelco to stop it undercutting his U.S. business with steel sales.
Stelco is a steelmaker based in Hamilton, Ontario.
Joly said the comments raised questions about whether the purchase was made in bad faith and followed the rules of Canada's Competition Act.
Cleveland-Cliffs agreed to keep Stelco's unionized workforce at 2024 levels through 2029, and the company says it is meeting its obligations under the Investment Canada Act.
The competition commissioner will examine the matter and decide whether any further action is warranted.
Industry Minister Mélanie Joly has asked the Competition Bureau to investigate whether Cleveland-Cliffs’ conduct around its purchase of Stelco may have breached the Competition Act.
The request follows comments by Cleveland-Cliffs CEO Lourenco Goncalves that he bought Stelco because he could not afford to have it undercutting his U.S. business.
The federal government has also pressed Cleveland-Cliffs to address layoffs at Stelco’s Hamilton plant and meet employment commitments made during the 2024 acquisition.
Cleveland-Cliffs says it is complying with its obligations, while the Competition Bureau has confirmed it received Joly’s letter but has not said whether it is investigating.
- Who
- Industry Minister Mélanie Joly asked the Competition Bureau to investigate Cleveland-Cliffs, Stelco’s U.S.-based parent company.
- What
- Joly asked the bureau to examine whether the company’s conduct warrants enforcement action under the Competition Act.
- When
- Friday, November 6, 2026.
- Where
- Canada; the request concerns Cleveland-Cliffs’ conduct in the Canadian marketplace and its purchase of Stelco.
- Why
- Joly cited CEO Lourenco Goncalves’s comments about buying Stelco to stop it from undercutting his U.S. business.
Federal government
Cleveland-Cliffs
Investigation
Federal government
Joly says the CEO’s comments warrant examination under the Competition Act.
Cleveland-Cliffs
Cleveland-Cliffs says it is in full compliance with its obligations under the Investment Canada Act.
Employment commitments
Federal government
Joly says the company must meet legally binding employment commitments and has pressed it to address Hamilton layoffs.
Cleveland-Cliffs
Cleveland-Cliffs says it expects Stelco’s annual employment numbers to be above the minimum required.
Stelco announced cuts of up to 500 jobs in Canada.
Stelco began issuing layoff notices to about 500 employees at its Hamilton plant.
Goncalves told CBC he bought Stelco to prevent it from flooding the U.S. market to the detriment of his company.
Joly asked the Competition Bureau to investigate Cleveland-Cliffs’ conduct.
- Minister
- Mélanie Joly
- Company under scrutiny
- Cleveland-Cliffs, Stelco’s U.S.-based parent
- Plant
- Stelco’s Hamilton, Ontario, steel plant
- Jobs affected
- About 500 layoff notices; up to 500 jobs announced for cuts
- Acquisition year
- 2024
- Employment commitment period
- Unionized employee numbers to remain at 2024 levels through 2029
4 sources
Joly asks Competition Bureau to probe Stelco deal after CEO comments
Joly seeks Competition Bureau probe of Stelco as more layoffs loom
Joly asks Competition Bureau to probe comments from Cliffs CEO about Stelco acquisition
Joly asks Competition Bureau to investigate Cleveland-Cliffs purchase of Stelco
What people are saying
If negotiations and acquisition were conducted in bad faith, Canadians deserve to know. The company needs to face the consequences.
At minimum, Mr. Goncalves’ statements indicate his company’s disregard for the importance of fair competition in the marketplace, and the important role that competition policy plays in delivering greater choice and affordability for consumers.
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.
The letter seems to fall short of a direction to the commissioner to look at this conduct under a particular provision of the act.
Posts on X
Here is my statement calling on the Competition Commissioner to review Stelco’s actions: