OTTAWA — Industry Minister Mélanie Joly has officially approved a historic merger between Teck Resources Ltd., a Canadian natural resources company, and Anglo American PLC, a major player from Britain. Joly announced in a statement that she concluded the merger will provide a net benefit to Canada, characterizing it as a “significant win” for the country.
The proposed merger, which was first revealed in September, will result in a new entity named Anglo Teck, projected to be a $70-billion copper mining powerhouse. Both companies announced the approval in separate statements, branding the deal as a “merger of equals," despite the fact that Anglo American has a market valuation that is more than double that of Teck.
Shareholders collectively embraced the merger plan last week, paving the way for its progression. Under the terms set forth by the approval, the merged company will have its headquarters in Vancouver, British Columbia, where most of its executives and board members will also be based.
Joly emphasized that the companies have committed to crucial agreements, including the preservation of approximately 4,000 jobs within Canada and an investment plan of $4.5 billion over the next five years. “It is an unequivocal endorsement of the federal government’s efforts to build the strongest economy in the G7,” Joly stated in her announcement.
Furthermore, B.C. Premier David Eby commented positively on the merger in a social media post, stating that it represents “great news” for the province. He described the newly formed mining giant, Anglo Teck, as the largest company in British Columbia’s history, highlighting its potential to unlock prosperity in the Northwest region and deliver substantial employment opportunities and benefits across the province.
Teck's CEO, Jonathan Price, echoed the sentiment, noting that the government’s approval will facilitate the emergence of a “global critical minerals champion.” He emphasized the strategic importance of the merger in reinforcing Canada’s role in the global minerals market.
However, Teck has also indicated that the completion of the merger is still subject to various customary conditions typical of transactions of this scale. This includes necessary regulatory approvals in multiple jurisdictions worldwide. So far, the merger has received competition approvals in both Canada and Australia, with other regulatory reviews continuing to move forward.
This monumental merger marks a significant shift in the mining landscape, not only for Canada but also on an international scale, signaling an era of consolidation in the resource sector. As such, the establishment of Anglo Teck is poised to redefine the industry and bolster the economies of the regions involved.
