Joly Asks Competition Bureau to Review Stelco Acquisition After CEO Comments

Industry Minister Mélanie Joly has requested the Competition Bureau investigate U.S. steelmaker Cleveland-Cliffs’ acquisition of Stelco for potential bad faith actions. This follows comments from Cleveland-Cliffs CEO Lourenco Goncalves, who stated he bought Stelco partly because it was undercutting prices in the U.S. market. Goncalves also indicated an intention to sell Stelco within a year and that he had become unwelcome in Canada.

• Industry Minister Mélanie Joly has asked Canada’s Competition Bureau to investigate Cleveland-Cliffs’ acquisition of Stelco.
• The probe is into whether Cleveland-Cliffs acted in bad faith.
• This action was prompted by comments from Cleveland-Cliffs CEO Lourenco Goncalves regarding his reasons for the purchase.
• Goncalves admitted to buying Stelco partly because it was flooding the U.S. market with low-priced steel.
• He also mentioned plans to sell Stelco within approximately one year and stated he was now ‘persona non grata’ in Canada.