Joly asks Competition Bureau to examine Cleveland-Cliffs conduct in Stelco takeover
Ottawa has sought renewed competition scrutiny of Cleveland-Cliffs, increasing regulatory pressure as the Stelco employment-commitment dispute continues.
Industry Minister Mélanie Joly has asked the Competition Bureau to examine Cleveland-Cliffs’ conduct surrounding its acquisition of Stelco and determine whether enforcement under the Competition Act may be warranted. The request follows the bureau’s 2024 review of the transaction, which ended with a no-action letter, but Joly cited new evidence concerning the company’s intent and conduct as grounds for renewed scrutiny. [1]
The referral adds a competition-law channel to Ottawa’s existing dispute with the U.S.-based steelmaker over employment commitments associated with the acquisition. In an Oct. 22 letter, Joly accused Cleveland-Cliffs of supporting U.S. tariffs on Canadian steel and then invoking those tariffs to support job cuts, while calling on the company to meet commitments it made when purchasing Stelco. [1]
Stelco had said on Sept. 28 that it could lay off as many as 500 workers at its Hamilton and Nanticoke, Ontario, mills, citing U.S. tariffs, weak demand for Canadian steel and competition from imports. Cleveland-Cliffs and the union subsequently confirmed that 175 workers had been laid off so far, all at Hamilton. [1]
Joly’s Competition Bureau letter was sent on the same day as the expiry of a 15-day federal deadline for Cleveland-Cliffs to address the layoffs. Ottawa has said that, if the company does not meet its employment commitments, it could seek a court order requiring compliance, pursue penalties of up to $10,000 a day, or compel a sale of Stelco. Cleveland-Cliffs did not respond to a request for comment in the report. [1]
The company has indicated that it hopes to recall all affected workers before Dec. 25 if it can increase domestic sales of Canadian-made steel. That prospective outcome remains contingent on the sales plan, while the minister’s request does not itself establish that the Competition Bureau will open a formal case or take enforcement action. [1]
The action increases regulatory uncertainty for Cleveland-Cliffs and its Canadian steel operations by adding a possible Competition Act examination to the federal employment-commitment dispute. Its significance is moderate rather than higher because Joly requested scrutiny, but the source does not report that the Competition Bureau has launched a formal investigation or imposed an enforcement measure. [1]