Ottawa approves merger of Teck and Anglo American
CBC
Industry Minister Mélanie Joly has approved a merger between Canadian natural resources company Teck Resources Ltd. and Britain's Anglo American PLC.
Joly said in a statement that she has determined the merger will be a net benefit to Canada and called it a "significant win."
Teck and Anglo American announced the approval in separate statements, referring to the deal as a "merger of equals," even though Anglo American is worth more than double Teck's value.
Shareholders last week gave their blessing to the plan, which was first announced in September, to create Anglo Teck, a $70-billion copper mining powerhouse.
Under the terms of the approval, the headquarters will be in Vancouver, as will most of the company's executives and board members.
Joly says the companies have agreed to several commitments that include securing about 4,000 Canadian jobs and spending $4.5 billion in Canada over five years.
"It is an unequivocal endorsement of the federal government's efforts to build the strongest economy in the G7," Joly said in a statement Monday.
"Anglo Teck, with its global headquarters in Vancouver, will be a truly Canadian champion on the world stage."
In a post on social media, B.C. Premier David Eby called the move "great news."
"New mining giant Anglo Teck will be the largest company in our province’s history," he said.
"They’ll help unlock prosperity in the Northwest and deliver good jobs and benefits across the province."
Teck CEO Jonathan Price said the approval will move forward the formation of a "global critical minerals champion."
Teck says the completion of the merger "remains subject to conditions customary for a transaction of this nature, including the relevant regulatory approvals in various jurisdictions globally."
It says the merger has already received competition approvals in Canada and Australia, while other reviews are progressing.
