Ottawa approves merger of Teck and Anglo American
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Industry Minister Melanie Joly has approved the merger between Canadian natural resources company Teck Resources Ltd. and Britain’s Anglo American Plc.
Joly said in a statement that he determined that the merger would be a net benefit to Canada and called it an “important victory.”
Teck and Anglo American announced the approval in separate statements, calling the deal a “merger of equals”, even though Anglo American is valued at more than twice that of Teck.
Shareholders gave their blessing to the plan last week, which was First announced in SeptemberAnglo Tech to build $70 billion copper mining powerhouse.
This is a major shock in the mining world. Two giants are joining forces to become one – and it’s headquartered right here in BC Jennifer Norvell has more on the winners and losers in the tech-Anglo-American marriage.
Under the terms of the approval, the headquarters will be in Vancouver, as will the majority of the company’s officers and board members.
Joly says the companies have agreed to a number of commitments including securing approximately 4,000 Canadian jobs and spending $4.5 billion in Canada over five years.
“This is a clear endorsement of the federal government’s efforts to build the strongest economy in the G7,” Joly said in a statement on Monday.
“Anglo Tech, with its global headquarters in Vancouver, will be a true Canadian champion on the world stage.”
Great news for BC – new mining giant Anglo Tech will be the largest company in our province’s history. They will help bring prosperity to the North-West and provide good jobs and benefits across the province. Welcome Anglo Tech!https://t.co/avncfdksHm
In a post on social media, BC Premier David Eby called the move “big news.”
“The new mining giant Anglo Tech will be the largest company in the history of our province,” he said.
“They will help bring prosperity to the North-West and provide good jobs and benefits across the province.”
Teck CEO Jonathan Price said the approval would lead to the formation of a “global critical minerals champion”.
Teck says completion of the merger is “subject to customary conditions for transactions of this nature, including relevant regulatory approvals in various jurisdictions globally.”
It said the merger has already received competition clearance in Canada and Australia, while other reviews are in progress.
