Teck and Anglo American said they received approval under the Investment Canada Act, allowing the companies to proceed with their planned “merger of equals.” first announced in September.
The transaction will combine the two miners into a new entity, Anglo Teck, headquartered in Vancouver and positioned as a major global supplier of copper and other critical minerals.
She further added that Anglo Teck, headquartered in Vancouver, “will be a true Canadian champion on the world stage.”
Both companies emphasized that the approval formalizes a broad range of binding commitments agreed with Ottawa aimed at securing long-term investment, jobs and governance influence in Canada.
Under these commitments, Anglo Teck will spend at least C$4.5 billion in Canada over the first five years following completion, supporting key projects such as the life extension of the Highland Valley Copper mine, upgrades to critical minerals processing at Teck’s Trail operations and the advancement of the Galore Creek and Schaft Creek copper projects in Northwestern BC.
In addition, Anglo Teck’s global headquarters will be located in Canada, with a significant majority of senior management, including the Managing Director, Deputy Managing Director and Chief Financial Officer, residing primarily in the country. A substantial part of the board will also be Canadian.
The combined company will maintain a listing on the Toronto Stock Exchange, in addition to a primary listing in London and secondary listings in Johannesburg and New York.
In addition to governance, commitments include maintaining employment levels across Teck’s Canadian operations, expanding youth employment and training opportunities, and ensuring Canadian and indigenous suppliers have fair access to contracts across Anglo Teck’s global operations.
The company is also committed to honoring all existing agreements with Indigenous governments, communities and unions while maintaining and promoting environmental and social standards in Canada.
Anglo Teck has further committed to investing in exploration and innovation, including at least C$300 million in Canadian critical mineral exploration and the establishment of a Global Institute for Critical Minerals Research and Innovation, involving institutions in Canada, South Africa and the United Kingdom.
Over a fifteen-year period, total spending in Canada is expected to be at least C$10 billion.
Jonathan Price, president and CEO of Teck, said in a recent press release that the merger “will create a company of significant scale and capacity that will generate billions in investment and stimulate new economic activity and job creation here in Canada and abroad.”
The deal has also received strong political support in B.C., where some of the company’s key assets are located.
In one social media messagePremier David Eby said the merger was “great news” and called Anglo Teck “the largest company in the history of our province.” He said the combined company would “help unlock prosperity in the Northwest and deliver good jobs and benefits across the province.”
The merger was approved by the shareholders of both companies at meetings on December 9.
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Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
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