Teck Resources’ Highland Valley Copper Mine near Logan Lake, B.C. British miner Anglo American announced plans to buy Teck in September.DARRYL DYCK/The Canadian Press
Anglo American PLC NGLOY has received approval from the federal government to acquire Teck Resources Ltd. TECK-B-T, clearing another major hurdle for the deal to close.
London-based Anglo in September announced it had reached an agreement to acquire Vancouver-based Teck in an all-stock deal worth roughly US$20-billion.
Shareholders at both Anglo and Teck approved the deal last week.
In a statement on Monday evening, Anglo said the federal government has now also given the deal the go-ahead.
In September, Anglo made major investment commitments as it sought approval from the federal government, including saying it would spend $4.5-billion in Canada over five years. The company also pledged to move its global headquarters to Vancouver from London, and committed to relocate many of its high-ranking personnel to Canada.
In its statement, Anglo reaffirmed those promises and said that it will spend at least $10-billion in Canada over 15 years.
The company also said it will spend at least $100-million on initiatives, including setting up a global Institute for Critical Minerals Research and Innovation, and investing in mining-related skills training for Indigenous and Canadian post-secondary institutions.
Industry Minister Mélanie Joly in a statement on Monday night said that promises made by Anglo will be legally binding commitments, which will drive growth, jobs, and bolster Canada’s strategic interests.
Ottawa approved the Teck deal in just over three months, much faster than some had expected. The government took about eight months to approve Glencore PLC’s acquisition of Teck’s coal business in 2024.
The Teck transaction was the first major test of new rules brought in by then industry minister François-Philippe Champagne in 2024. Mr. Champagne said that Ottawa from then on would approve foreign acquisitions of big Canadian critical minerals companies only “in the most exceptional of circumstances.”
More international regulatory approvals are still needed before Anglo’s acquisition of transaction can close. Anglo said obtaining all of the necessary approvals could take up to 18 months.
Anglo will remain domiciled in London and its primary stock listing will be the London Stock Exchange.
Dating back to 1913, Teck is one of Canada’s biggest and oldest mining companies, with domestic and international operations in copper, zinc, lead and germanium. In British Columbia, Teck operates the Highland Valley copper mine and the Trail smelter.
The Anglo purchase of Teck also needs approval from regulators in Europe, Japan, South Korea, the United States, Chile and China around antitrust concerns. Under scrutiny is the impact Anglo Teck will have on the global copper industry and whether too much power would be concentrated in one entity. Anglo Teck would control just under 5 per cent of the copper market.