Joly asks Competition Bureau to probe Stelco deal after CEO comments

Industry Minister Melanie Joly is requesting a Competition Bureau investigation into Stelco, the Canadian subsidiary of U.S.-based steel company Cleveland-Cliffs, ahead of expected layoffs. Joly cited Cleveland-Cliffs CEO Lourenco Goncalves' statement that he purchased Stelco to avoid flooding the U.S. market with their products.

The Competition Bureau will examine whether Cleveland-Cliffs' actions violate Canadian competition law under the Competition Act. Stelco has already begun notifying about 500 employees of layoffs at its Hamilton, Ontario plant, following a reduction in its operations. The company has offered only 40 jobs at their Lake Erie facility, though the union representing Stelco workers claims more positions have been offered.

Joly warned that if Stelco does not reverse the layoffs within 15 days, the federal government will initiate legal action, potentially forcing Cleveland-Cliffs to divest the Canadian steel firm. Cleveland-Cliffs claims the layoffs are due to a 50% tariff on aluminum and steel imposed by the U.S., a stance supported by the company's leadership.

Prime Minister Mark Carney criticized Cleveland-Cliffs for not respecting its commitments in the acquisition, stating that not adhering to these obligations would be a mistake for the company.