Ministerial statement on the Investment Canada Act review of Cleveland-Cliffs acquisition of Stelco

OTTAWA, ON, Oct. 30, 2024 /CNW/ - Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, made the following statement:

"Foreign investment encourages economic growth, innovation, and employment opportunities in Canada. At the same time, the Government of Canada has a responsibility to make sure the most significant foreign investments will benefit Canadians. 

"On July 15, 2024, Stelco Holdings Inc. and Cleveland-Cliffs announced an agreement pursuant to which Cleveland-Cliffs would acquire all of the outstanding shares of Stelco.  

"Following an extensive review under the Investment Canada Act, yesterday, I approved the investment. This approval is contingent on a significant package of binding, five-year-long undertakings to support Cleveland-Cliffs' net benefit case which it provided as part of the review process, including:

• To respect Stelco's historic brand by carrying on operations under the name, "Stelco, a Cleveland-Cliffs Company";
• To maintain Stelco's head office in Hamilton, with responsibility for Stelco's day-to-day operations;
• To continue to employ at least the same number of unionized employees and the vast majority of non-unionized employees as were employed when the transaction was announced;
• To honour all existing collective bargaining agreements and Stelco's employee benefit and pension commitments;
• To make significant capital and research and development expenditures in support of Stelco's operations; and
• To ensure Stelco's Scope 1 and Scope 2 greenhouse gas emission intensity do not increase and continue to be at least 25 percent below the global average for integrated steel mills.

"While Canada welcomes foreign investment, the Government is committed to considering all factors laid out in the Investment Canada Act when reviewing transactions to ensure they are beneficial to Canadian workers and Canada's economic interests."

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Contacts: Audrey Milette, Press Secretary, Office of the Minister of Innovation, Science and Industry, [email protected]; Media Relations, Innovation, Science and Economic Development Canada, [email protected]