Industry Minister Mélanie Joly emphasized the need for prolonged commitments to Canada before approving the merger between Vancouver-based Teck Resources Ltd. and U.K.-based Anglo American PLC. Joly highlighted the importance of ensuring a net benefit to Canada, stating that current discussions with the companies were insufficient. The merger must align with national security concerns and economic objectives, she added.
The proposed merger, creating a $70-billion copper mining entity named Anglo Teck, would be headquartered in Vancouver with top executives based there. Despite being described as a “merger of equals,” Anglo American holds a higher value than Teck. The deal is subject to review under the Investment Canada Act, which aims to safeguard national interests, including economic security.
Joly plans to engage in further discussions with the CEOs of both companies to address long-term considerations, emphasizing the importance of job creation and establishing a robust headquarters for the future. While Anglo Teck promises a Vancouver headquarters, it would remain incorporated in London, with Teck’s CEO serving as deputy CEO.
Legal expert Camden Hutchison suggested that binding agreements between the companies and the government could secure approval, potentially including commitments to retain Anglo Teck’s Vancouver headquarters for a specific duration. Hutchison highlighted the government’s leverage in ensuring beneficial outcomes and the repercussions of failing to honor such commitments.
Anticipating negotiations between Ottawa and the companies, Hutchison emphasized the significance of addressing economic concerns and public perception. The companies have pledged substantial spending in Canada as part of the merger, with Teck already investing in projects such as the Highland Valley copper mine extension near Kamloops, B.C.
The spending commitments also include funds for projects in the Golden Triangle region of northwest B.C. and enhancements to the Trail smelter. Moreover, Teck and Anglo American have committed to investing in critical minerals exploration and technology in Canada, aiming to strengthen the country’s critical minerals sector.
Teck spokesperson Dale Steeves expressed enthusiasm about the merger’s potential to establish a Canadian-based global critical minerals leader, emphasizing the benefits it could bring to the economy, society, and strategic interests of Canada.