Teck Resources Gains on Key Canadian Approval for Anglo American Merger
The Canadian government has granted crucial national security clearance for the $53 billion deal, paving the way for the creation of a global copper-focused mining giant.
Teck Resources (NYSE: TECK) saw its shares climb in trading after the Canadian government provided a critical approval for its proposed merger with Anglo American, a blockbuster deal valued at approximately $53 billion that will forge a new leader in copper and other minerals essential for the global energy transition.
The Minister of Innovation, Science and Industry granted the national security clearance under the Investment Canada Act (ICA), a pivotal step that significantly de-risks the complex transaction. According to a joint statement from the companies, the approval follows a series of commitments made by the future combined entity, to be named Anglo Teck.
These commitments include maintaining a Canadian headquarters in Vancouver, B.C., a primary listing on the London Stock Exchange with secondary listings on the TSX and NYSE, and substantial investments into the Canadian economy. Anglo Teck has pledged to invest at least C$4.5 billion in Canada within the first five years and a total of C$10 billion over 15 years.
The approval marks a major victory for Teck’s management, which pursued the friendly merger with Anglo American after successfully fending off a high-profile hostile takeover bid from Swiss commodity giant Glencore earlier this year. Teck argued that the Anglo American deal would create superior value for shareholders by separating its steelmaking coal assets and creating a pure-play powerhouse focused on future-facing commodities.
The proposed transaction will see Anglo American spin off its own steelmaking coal business and combine its remaining assets with Teck. The new entity, Anglo Teck, will have a portfolio heavily weighted towards copper, with projected annual production of 1.2 million tons, growing to 1.35 million tons by 2027. Existing Teck shareholders are set to own 37.6% of the new company, with Anglo American shareholders holding the remaining 62.4%.
Investor optimism has been building as the deal clears successive hurdles. In addition to the key ICA approval, the merger received overwhelming support from both Teck and Anglo American shareholders on December 9th. Just days ago, the transaction also secured a final order from the Supreme Court of British Columbia, another necessary step in the arrangement.
The strategic rationale for the merger is centered on the surging long-term demand for copper, a critical metal for electric vehicles, renewable energy infrastructure, and grid modernization. By combining their copper assets, the companies aim to create an industry leader with unparalleled scale and a robust pipeline of growth projects.
Management has projected that the merger will unlock significant shareholder value, forecasting $800 million in annual pre-tax synergies within four years of completion. While the Canadian government’s approval is the most significant milestone to date, the deal remains subject to further competition and regulatory clearances in several other international jurisdictions. The companies expect the transaction to be fully completed within 12 to 18 months of its initial announcement in September 2025.