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(Bloomberg) — The Canadian government has approved Anglo American Plc’s acquisition of Teck Resources Ltd., helping to clear the way for the creation of a $50 billion metals giant focused on copper mines in Chile and Peru.
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The approval under the Investment Canada Act formalizes commitments made by the miners in September and comes within a week of both firms’ shareholders giving their consent to the deal.
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“The government of Canada’s approval is an important step forward in the formation of Anglo Teck, a new global critical minerals champion headquartered in Canada,” Teck Chief Executive Officer Jonathan Price said in a statement.
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Anglo’s deal to acquire Teck — struck about three months ago — will give it access to the Canadian firm’s portfolio of copper mines just as the metal is trading near record highs. Anglo’s copper business has also drawn the attention of rivals, with the London-based company twice rejecting approaches from BHP Group, the world’s biggest miner.
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Anglo and Teck agreed to strengthen earlier promises about the new headquarters, which will be in Vancouver. Two-thirds of senior executives at Anglo Teck will have to reside primarily in Canada, and the board will have 50% Canadian representation for seven years, according to Industry Minister Melanie Joly.
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The minister said the deal would secure 4,000 jobs in the country — equal to Teck’s current employment there. The companies also said they’ll seek inclusion in Canada’s major stock indexes and spend at least C$4.5 billion ($3.3 billion) in the country within five years.
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Teck’s copper assets have long been coveted by major mining firms, though its flagship Quebrada Blanca mine in northern Chile has been beset by operational problems. Anglo owns a neighboring copper mine called Collahuasi.
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Anglo agreed to pay 1.3301 shares for each Teck share in a deal both companies presented as a zero-premium transaction when it was announced.
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—With assistance from Doug Alexander.
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(Updates with information, beginning in the fourth paragraph.)
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English (US)