Canada has approved the merger of Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK) and Anglo American (LSE:AAL,OTC:NGLOY), clearing a major regulatory hurdle for the creation of a new global mining heavyweight worth over US$53 billion.
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, which will be headquartered in Vancouver and positioned as a major global supplier of copper and other critical minerals.
Industry Minister Mélanie Joly said she determined the transaction would deliver a net benefit to Canada, adding that the deal represents “an unequivocal endorsement of the federal government’s efforts to build the strongest economy in the G7.”
She further added that Anglo Teck, with its headquarters in Vancouver, “will be a truly Canadian champion on the world stage.”
Both companies emphasized that the approval formalizes a wide-ranging set of binding commitments negotiated with Ottawa, aimed at securing investment, jobs, and governance influence in Canada over the long term.
Under those undertakings, 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 advancement of the Galore Creek and Schaft Creek copper projects in northwestern B.C.
Furthermore, Anglo Teck’s global headquarters will be based in Canada, with a significant majority of senior management, including the chief executive, deputy chief executive, and chief financial officer, residing primarily in the country. A substantial proportion of the board will also be Canadian.
The combined company will retain a listing on the Toronto Stock Exchange, alongside a primary listing in London and secondary listings in Johannesburg and New York.
Beyond governance, the 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 has also committed to honouring all existing agreements with Indigenous governments, communities, and labour unions while maintaining and advancing environmental and social standards in Canada.
Anglo Teck has further pledged to invest in exploration and innovation, which includes 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 UK.
Over a 15-year period, total spending in Canada is expected to reach at least C$10 billion.
Jonathan Price, Teck’s president and chief executive, said in a recent press release that the merger will create “a business of significant scale and capability that will deliver billions in investment and drive new economic activity and job creation here in Canada and beyond.”
The deal has also drawn strong political support in BC, where several of the company’s key assets are located.
In a social media post, Premier David Eby said the merger was “great news,” calling Anglo Teck “the largest company in our province’s history.” 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 shareholders of both companies at meetings held on December 9.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.