Industry Minister Mélanie Joly has asked the Competition Bureau to examine Cleveland-Cliffs’ conduct in acquiring Stelco, opening a new front in Ottawa’s dispute with the steelmaker over jobs in Hamilton and Nanticoke.

The Canadian Press reported November 6 that Joly’s letter asks whether the company’s conduct warrants enforcement action under the Competition Act. The bureau reviewed the takeover in 2024 and issued a no-action letter.

Joly cites chief executive Lourenco Goncalves’ January congressional testimony that preventing Canadian steel from flooding the U.S. market was part of the acquisition rationale. Cleveland-Cliffs did not immediately respond to CP’s request for comment.

The request is not a bureau finding of wrongdoing or an announcement that enforcement proceedings have begun.

The referral follows earlier legal consultations. CHCH reporter Manesa Dhanabalan reported October 28 that Joly had contacted government lawyers after Goncalves discussed the purchase in a CBC interview. Joly said those remarks could affect Ottawa’s ongoing enforcement action over the company’s employment commitments.

CHCH reported that Goncalves was counting on Canadian customers buying more domestically produced steel to restore jobs, rather than tighter import restrictions. He also said he intended to sell Stelco in about a year.

Ontario Economic Development Minister Victor Fedeli criticized the company’s shifting explanations in that report and pointed to its support for U.S. steel tariffs. Those criticisms were the minister’s assessment, not findings by a regulator.

CHCH also interviewed Rafael Gomez, director of the Centre for Industrial Relations and Human Resources, who questioned whether pursuing legal claims and counter-tariffs would compound losses. He argued that reducing tariffs should be Ottawa’s priority.

The employment stakes remain substantial. CHCH reported that Stelco’s September internal letter warned that cuts could affect up to 500 employees across Hamilton and Nanticoke. Goncalves subsequently disputed that scale, putting the number closer to 175. Friday’s competition referral concerns the takeover’s rationale, rather than announcing another round of layoffs.

Sources