Teck Resources (TECK.US) and Anglo American have announced that their merger plan has received key approval from the Canadian government, a move that will create one of the world's largest copper producers. As of press time, Teck's shares rose 2.3% in pre-market trading on Tuesday.
The two companies stated that the newly formed "Anglo-Teck" entity will "deliver extraordinary and lasting benefits to Canada," with its global headquarters to be located in Vancouver, British Columbia, where Teck is currently headquartered. The companies have further clarified commitments under Canada's Investment Act, including:
- Anglo-Teck's pledge to invest at least CAD 4.5 billion (approximately USD 3.27 billion) in Canada over five years, focusing on extending the life of the Highland Valley Copper mine, enhancing critical mineral processing capacity at the Trail smelting complex, and advancing the development of the Galore Creek and Schaft Creek copper projects in British Columbia. - Based on these commitments, Anglo-Teck plans to invest at least CAD 10 billion over 15 years.
Jonathan Price, President and CEO of Teck Resources, said, "This merger unites two world-class companies into a new entity with significant scale and strength, bringing billions in investment to Canada and globally, driving new economic activity and job growth."
Despite reservations from Canadian Industry Minister Mélanie Joly, the deal was approved. In a statement issued Monday, Joly noted that the transaction benefits Canada's economy, particularly highlighting commitments to retain 4,000 employees in Canada, ensure Canadian directors hold a majority on the new company's board for at least seven years, and allocate hundreds of millions in dedicated funding for Indigenous communities in British Columbia.
Comments