Industry Minister Mélanie Joly is asking Canada’s Competition Bureau to probe whether U.S. steelmaker Cleveland-Cliffs acted in bad faith when it acquired Canadian steelmaker Stelco in 2024, following comments by the company’s chief executive about his reasons for the purchase.
Joly said in a Nov. 6 statement posted on social media that, after consulting her legal team, she had sent a letter to the Competition Commissioner asking the bureau to examine Cleveland-Cliffs’ conduct in the Canadian marketplace and determine whether it warrants enforcement action under the Competition Act.
Cleveland-Cliffs CEO Lourenco Goncalves told CBC News on Oct. 27 that he bought Stelco partly because the Canadian company was flooding the U.S. market with steel and undercutting prices, which he said was hurting his company. He also said he intended to sell Stelco in about a year, adding that he had become “persona non grata” in Canada.
Goncalves made similar remarks during a congressional hearing in January 2026, saying Cleveland-Cliffs acquired Stelco partly to prevent Canadian steel from flooding the U.S. market.
In her statement, Joly said the comments were a “shocking admission” for workers at Stelco’s facilities in Hamilton and Nanticoke, Ont., as well as for the federal government.
“If negotiations and acquisition were conducted in bad faith, Canadians deserve to know. The company needs to face the consequences,” she said.
Joly said it is the commissioner’s responsibility to “examine this matter thoroughly” and determine whether it warrants enforcement action under the Competition Act.
The bureau had reviewed the Stelco acquisition in 2024 and issued a no-action letter. Joly is now seeking further scrutiny in light of what she described as new evidence about the company’s intentions.
Stelco announced plans on Sept. 28 to lay off up to 500 workers at its Hamilton Works and Lake Erie Works in Nanticoke, citing U.S. tariffs, weak demand for Canadian steel, and competition from imported steel products.
Cleveland-Cliffs and the union have since confirmed that 175 workers have been laid off so far, all at the Hamilton facility.
Joly had previously raised the possibility of forcing Cleveland-Cliffs to sell Stelco under the Investment Canada Act, saying several companies had expressed interest in acquiring the Canadian steelmaker’s assets.
Her letter to the Competition Bureau comes as Ottawa’s 15-day deadline expires for Cleveland-Cliffs to address alleged breaches of binding employment commitments it made when it acquired Stelco in 2024.
Joly had asked the company to address the alleged violations, demonstrate that it had not breached its commitments or explain why it had failed to meet them.
Cleveland-Cliffs has maintained that it is complying with its obligations under the Investment Canada Act, and has disputed Ottawa’s allegations. The company has said it expects its latest compliance report to show that it has met all 34 commitments.
In an Oct. 26 statement, Goncalves said the company had honoured its obligations and wanted to resolve the dispute over the 175 workers temporarily laid off in Hamilton.
“We made serious commitments to Canada when we acquired Stelco, and we have honoured them,” he said.
Cleveland-Cliffs also said its projected average annual employment remained above the minimum levels required under the acquisition agreement.
Goncalves said on Nov. 4 that Cleveland-Cliffs could recall all 175 laid-off Hamilton workers before Christmas, depending on demand for Canadian-made steel. He said bringing the workers back would depend on Canadian customers purchasing Stelco-produced steel.
The Canadian Press contributed to this report.
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