THE Canadian government has cleared Anglo American’s proposed takeover of Teck Resources on national security grounds, said Bloomberg News citing an earlier report by Canada’s Globe & Mail.
The government’s initial security review period for assessing whether proposed foreign takeovers of Canadian critical minerals companies has lapsed without an extension, meaning the deal by default has been cleared on that basis, the Globe reported.
Under the Investment Canada Act, the national security review will examine potential effects on critical minerals and supply chains. Canada classifies both copper and germanium, which Teck produces, as critical minerals.
Canada strengthened the ICA in 2024, imposing stricter requirements on major foreign acquisitions of domestic firms and their national security implications.
There is still another regulatory hurdle for the two firms to cross. Ottawa still has the power to block the takeover if it fails to clear a net economic benefit review, said Bloomberg News.
Shareholders of Anglo and Teck are scheduled to vote on the deal on December 9 at meetings in London and Vancouver.
Proxy advisory firm ISS recommended on Wednesday that shareholders of both companies support the transaction.
Earlier, the proposed merger received the support of Institutional Shareholder Services Inc. which recommended investors vote in favor of the combination. It was the second shareholder advisory firm to support the mining deal, said Bloomberg News.
“Support is considered warranted for the merger, due to the anticipated synergies, strategic benefits, and positive market reaction.” ISS said in a report issued Wednesday. The report comes five days after Glass, Lewis & Co. recommended investors vote in favor of the deal.
