Canada's industry minister consults lawyers after Stelco acquisition comments

Canada’s industry minister said she contacted the department’s legal counsel after Cleveland-Cliffs chief executive Lourenço Gonçalves told CBC that he purchased Hamilton-based steelmaker Stelco to prevent it from undercutting his U.S. production facilities.

"The last words by the president of Stelco definitely made us contact our lawyers to see what could be the consequences of such confessions," Minister Mélanie Joly said on Wednesday. Gonçalves explained to host David Cochrane that he bought Stelco because the company’s pricing in the United States was harming his own business. The remarks follow Joly’s earlier demand that Cleveland-Cliffs reverse recent layoffs or face possible legal action. The federal government says the 2024 purchase agreement required the buyer to maintain the current level of unionized Stelco workers through 2029. In a letter last week, Joly warned that failure to honor the agreement could lead to court remedies, including financial penalties or an order to divest the steelmaker. Cleveland-Cliffs maintains it is in full compliance with the Investment Canada Act obligations tied to the acquisition. Gonçalves said the company is not for sale at present but indicated a future divestiture, adding that he feels unwelcome in Canada and would consider selling after operating the business for another year.