Ottawa Approves Teck-Anglo American Merger with Major Investments

The Government of Canada has officially approved the merger of Teck Resources Ltd. and Anglo American, marking a significant step forward for the two companies under the Investment Canada Act. Announced initially in September, the merger received the green light from shareholders on December 9, 2023, and is now poised to establish a new entity known as Anglo Teck.

According to a news release from Teck and Anglo American dated December 15, the merger is backed by a commitment for Anglo Teck to invest at least $4.5 billion in Canada over the next five years. This substantial investment will support several key projects, including the life extension of the Highland Valley Copper mine, enhancements to critical minerals processing capacity at Trail, and advancements in the Galore Creek and Schaft Creek copper projects located in northwestern British Columbia. The total investment in Canada is expected to exceed $10 billion over a 15-year period.

Jonathan Price, president and CEO of Teck, emphasized the merger’s potential, stating, “The Government of Canada’s approval is an important step forward in the formation of Anglo Teck, a new global critical minerals champion headquartered in Canada.” He highlighted that the merger will combine the strengths of both companies, generating significant economic activity and job creation in Canada and beyond.

The merger aligns with the economic priorities of both federal and provincial governments, aiming to elevate Canada’s role within the global critical minerals sector. Price noted, “Establishing Anglo Teck here in Vancouver is wholly aligned with government’s economic focus and will help to further elevate Canada’s role and impact on the global critical minerals stage.”

Duncan Wanblad, CEO of Anglo American, expressed satisfaction with the approval, stating, “Today’s confirmation by Minister of Industry, the Honourable Mélanie Joly, marks yet another step towards forming a major global critical minerals powerhouse.” He described the merger as a significant investment in Canada’s mining sector, with long-term economic benefits anticipated for British Columbia and the entire country.

While the merger has received regulatory approval from Canada, additional approvals are still required in other jurisdictions. Teck has confirmed that competition approvals have already been granted in Canada and Australia, with further reviews ongoing. Once finalized, Anglo Teck will be based in Vancouver, with its primary listing on the London Stock Exchange, while also retaining listings on the Johannesburg Stock Exchange, Toronto Stock Exchange, and New York Stock Exchange.

Shareholder support for the merger was overwhelmingly positive. At a special meeting on December 9, 99.7 percent of Class A shareholders and 89.7 percent of Class B subordinate voting shareholders approved the merger. Anglo American shareholders also voted in favor of the deal, which includes a post-closing name change to Anglo Teck plc.

In Trail, United Steelworkers Local 480 reported constructive discussions with Teck following the merger announcement. Union leaders have indicated that the company has committed to maintaining current collective agreements, benefits, and pension plans, with no plans for workforce reductions at Trail Operations. As part of its broader investment strategy, Teck plans to allocate approximately $750 million to the Trail smelter, focusing on critical mineral projects and future feed changes. Local 480 represents around 1,200 workers at the site.

Additionally, the City of Trail has formally backed the merger, stating in a letter to the federal government that the transaction would enhance Canada’s competitiveness in the global critical minerals market. The city council highlighted Trail’s longstanding role as a cornerstone of the nation’s mining and smelting industry.

This merger positions Teck and Anglo American as key players in the critical minerals sector, with the potential to drive significant economic growth and innovation in Canada.