OTTAWA – Industry Minister Mélanie Joly has officially approved the merger between Canadian natural resources firm Teck Resources Ltd. and British mining giant Anglo American PLC. The Minister confirmed that the merger would bring a net benefit to Canada, labeling it a "significant win." This decision comes as a result of shareholder approval, which occurred last week, for a plan first unveiled in September, aiming to establish Anglo Teck, a formidable $70-billion copper mining enterprise.
In separate announcements, both Teck and Anglo American referred to the merger as a "merger of equals," despite Anglo American's valuation being more than double that of Teck. The newly formed entity, Anglo Teck, will have its headquarters in Vancouver, British Columbia, along with the majority of its executives and board members based in the same city. Joly stated that the companies are bound by commitments to secure approximately 4,000 jobs in Canada and invest $4.5 billion in the country over a five-year span.
The Minister emphasized that this approval serves as a strong endorsement of the federal government’s ongoing efforts to cultivate the most robust economy within the G7 nations. "Anglo Teck, with its global headquarters in Vancouver, will be a truly Canadian champion on the world stage," Joly remarked in her statement on Monday.
British Columbia Premier David Eby endorsed the merger as "great news," asserting that the establishment of the new mining giant, Anglo Teck, marks a historic milestone as the largest company in the province's history. Eby expressed confidence that the merger will help unlock prosperity in the Northwest region and generate high-quality jobs and benefits throughout British Columbia.
Teck CEO Jonathan Price reflected positively on the merger approval, stating that it paves the way for a "global critical minerals champion." He highlighted the strategic importance of the merged entity in the context of the growing demand for critical minerals, essential for various technologies and sustainable practices.
However, Teck also noted that the completion of the merger is still subject to customary conditions typical for such significant transactions, which include securing regulatory approvals in multiple jurisdictions worldwide. It is worth mentioning that the merger has already received approval from competition regulators in Canada and Australia, while additional regulatory reviews are currently underway in other locations.
This merger is expected to reshape the landscape of the mineral resources sector not only in Canada but globally, potentially enhancing the competitive edge of the merged entity in a rapidly evolving market driven by the need for sustainable resources and innovative mining practices.
