Industry Minister Mélanie Joly has given the green light to the merger of Canadian natural resources company Teck Resources Ltd. and Britain’s Anglo American PLC. Joly stated that the merger will benefit Canada overall and described it as a significant achievement.
Teck and Anglo American both confirmed the approval separately, labeling the merger as a “merger of equals,” despite Anglo American having more than double the value of Teck. Shareholders approved the plan last week, which was initially announced in September and aims to create Anglo Teck, a $70 billion copper mining powerhouse.
As part of the approval terms, the new company’s headquarters will be in Vancouver, with the majority of executives and board members also located there. Joly highlighted that the companies have committed to preserving around 4,000 jobs in Canada and investing $4.5 billion in the country over the next five years.
Joly lauded the government’s efforts to strengthen the economy, stating, “Anglo Teck, headquartered in Vancouver, will stand as a prominent Canadian player on the global platform.”
B.C. Premier David Eby expressed his optimism about the merger on social media, welcoming Anglo Teck as the largest company in the province’s history and foreseeing economic growth and job opportunities across British Columbia.
Teck CEO Jonathan Price emphasized that the merger approval will propel the establishment of a “global critical minerals champion.” The merger’s finalization is pending customary conditions for such transactions and regulatory approvals in various jurisdictions, with approvals already secured in Canada and Australia, and other reviews underway globally.