Teck Resources’s Highland Valley Copper Mine near Logan Lake, B.C. The company announced mining deal with Anglo American last week, and Prime Minister Mark Carney said London-based Anglo would need to move its headquarters to Canada to get the necessary government approval.DARRYL DYCK/The Canadian Press
Prime Minister Mark Carney told Anglo American PLC NGLOY that it had to move its headquarters to Canada or its proposed acquisition of Teck Resources Ltd. TECK-B-T would not be allowed to proceed, two sources familiar with the matter told The Globe and Mail.
London-based Anglo last week unveiled an all-stock takeover of Vancouver-based Teck worth approximately US$20-billion. In an unusual move, Anglo said it would move its headquarters to Vancouver once the deal closed.
Mr. Carney also made it clear in his conversations with Anglo American that the requirement to move headquarters to Canada would be a bar that any company planning on buying Teck would have to hit, the sources said.
The Globe and Mail is not identifying the sources because they were not authorized to speak publicly.
Audrey Champoux, a spokesperson for Mr. Carney, declined to comment.
James Wyatt-Tilby, senior vice-president, corporate affairs with Anglo, declined to comment.
Teck declined to comment on Carney’s conditions for the Anglo deal, but Doug Brown, Teck’s vice-president of communications and government affairs, wrote in an email to The Globe that “it is unprecedented for a major multi-national mining company to move its global headquarters to Canada in this fashion.“
With Mr. Carney insisting that any potential suitor for Teck move its headquarters to Canada, the chances of other bidders surfacing appears to be low. Other previously speculated suitors for Teck, including BHP Group Inc., Glencore PLC, Vale SA, and Freeport-McMoRan Inc., all which have headquarters outside of Canada.
Analysis: Teck Resources justified its takeover to shareholders – but not to Canadians
Ottawa in 2024 tightened the rules around proposed acquisitions of Canadian critical minerals companies. After approving Glencore PLC’s acquisition of a majority stake in Teck’s coal business, then-industry minister François-Philippe Champagne said Canada would only approve foreign acquisitions of important Canadian mining companies engaged in significant critical-minerals operations “in the most exceptional of circumstances.”
In justifying the higher bar, he said it was because of the strategic importance of Canada’s critical-minerals sector and the need to protect it.
The proposed takeover of Teck by Anglo must still be approved by Ottawa before it can close. Industry Minister Mélanie Joly will scrutinize the transaction for national-security concerns, and it must make economic sense for Canada under the net-benefit test.
Anglo also said that its chief executive officer, deputy CEO, chief financial officer and “a significant majority” of the executive management team will be based in and live in Canada; and “a substantial proportion” of the board of directors will be Canadian. In addition, the company will be renamed “Anglo Teck.”
While Anglo has promised to move its headquarters to Canada, it will remain a British company domiciled in London. In addition, the company’s primary stock listing will be in London. A secondary stock listing is planned for Canada.