Joly asks Competition Bureau to investigate Stelco owner after CEO comments

OTTAWA · Industry Minister Mélanie Joly has formally asked Canada's competition commissioner to investigate whether Cleveland-Cliffs Inc.'s conduct in acquiring Stelco Inc. violated the Competition Act. Joly cited public comments by Cleveland-Cliffs CEO Lourenco Goncalves, who said he bought the Canadian steelmaker to stop it from flooding the U.S. market to the detriment of his own company. The request comes as a federal deadline for the company to address layoffs at Stelco's Hamilton plant expires. Joly said the CEO's remarks were a "shocking admission" and that if negotiations were conducted in bad faith, the company should face consequences.

In a letter to acting competition commissioner Jeanne Pratt on Friday, Joly asked the bureau to "thoroughly examine whether Cleveland-Cliffs' conduct in the Canadian marketplace warrants enforcement action." She pointed to Goncalves's October interview with CBC News, where he stated, "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 also referenced similar testimony Goncalves gave at a U.S. congressional hearing in January 2026. "This type of conduct is highly questionable and may be reviewable under the Competition Act," Joly wrote in the letter, which was obtained by The Globe and Mail. She said the CEO's statements indicate "his company's disregard for the importance of fair competition in the marketplace." The Competition Bureau had reviewed the takeover in 2024 and issued a no-action letter, but Joly is now prompting more scrutiny "in light of new evidence regarding the intent of the firm's conduct."

The investigation request is the latest escalation in a dispute over layoffs at Stelco's operations in Hamilton and Nanticoke, Ont. Stelco, owned by Ohio-based Cleveland-Cliffs, announced plans on Sept. 28 to lay off up to 500 workers, citing U.S. tariffs, weak demand and import competition. The federal government says the company agreed when it purchased Stelco to keep unionized employee numbers at 2024 levels through to 2029. Joly has accused Cleveland-Cliffs of failing to honour those legally binding commitments.

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In late October, Joly warned the company in a letter that if it did not reverse the layoffs within 15 days, the government would start legal action. That could lead to penalties of up to $10,000 a day or a court order forcing Cleveland-Cliffs to divest Stelco. The 15-day deadline ends with Joly's Friday letter. Cleveland-Cliffs has maintained it is in "full compliance" with its obligations under the Investment Canada Act. The company and the union have confirmed that 175 workers have been laid off so far, all in Hamilton, which is fewer than initially announced.

Prime Minister Mark Carney said last month that Cleveland-Cliffs would be making a "mistake" by not respecting its obligations and commitments. He made the comment when asked if the government regretted allowing the 2024 acquisition. "The mistake here would be Cleveland-Cliffs not respecting the obligations, the commitments that they made in the acquisition," Carney said. Cleveland-Cliffs has said one reason for the layoffs is the 50 per cent U.S. tariff on aluminum and steel, which the company's leadership has publicly supported. Nosy Mag reported in October that Joly warned the company it could not cite tariffs as a reason to cut jobs after its CEO supported them.

Last week, Goncalves said he hopes to recall all laid-off workers before Dec. 25 if a plan to boost sales of Canadian-made steel to domestic customers succeeds. The union representing Stelco workers has said only about 40 of the impacted Hamilton employees have been offered jobs at the company's Lake Erie facility. Joly, in an Oct. 29 letter to Stelco president Paul Simon, said she expects a "concrete and credible plan for re-engagement with these workers."

With files from The Canadian Press, Global News and CBC News