Anglo Teck merger approved by Canadian regulators

(Sharecast News) - The Canadian government has given the green light for Anglo American's $50bn merger with Vancouver-based copper and zinc miner Teck Resources. Canada's Minister of Industry Mélanie Joly granted regulatory approval for the merger of equals, under the condition that the combined group will spend at least C$4.5bn (£2.5bn) in Canada within five years.

The proposed investments include the extension of the life of the Highland Valley Copper mine in south-central British Columbia, ramping up the critical minerals processing capacity at the Trail smelting and refining complex in southern British Columbia, and developing the Galore Creek and Schaft Creek copper projects in northwestern British Columbia.

Such spending will see Anglo Teck invest a total of at least C$10bn in Canada over the next 15 years.

The regulatory approval follows the vast majority of shareholders endorsing the proposed tie-up last week, with 89.7% of Teck votes and 99.2% of Anglo votes cast in favour of the deal.

Anglo chief executive Duncan Wanblad said the approval "marks yet another step towards forming a major global critical minerals powerhouse".

"Anglo Teck represents a significant investment in Canada, its people and its natural resources, underpinned by a comprehensive package of commitments designed to drive enduring economic and wider benefits associated with a thriving mining ecosystem in British Columbia, and in Canada as a whole," he said.

The merger still faces competition and regulatory approvals in various jurisdictions globally, but has already received competition approvals in Canada and Australia.

The newly formed entity will be based in Vancouver and keep its primary listing in London, as well as other listings in Johannesburg, Toronto and New York.