CANADA will conduct a national security review of the proposed merger between Anglo American and Teck Resources, said Reuters on Wednesday citing the country’s Industry Minister Melanie Joly.
Speaking to reporters from South Korea via teleconference, Joly said Ottawa would reach a final decision in the coming months. “The national security review for any transaction is always part of the process… so we’re following the process,” she stated.
The announcement had little immediate impact on share prices. Teck’s stock rose 1% during midday trading in Toronto, whilst Anglo American shares gained 2.4% at the close in London, said the newswire.
The $53bn transaction, amongst the mining sector’s largest, would establish a copper powerhouse. However, its scale requires approval from multiple regulators, including Canadian authorities.
Both companies’ senior management have offered to relocate the merged entity’s headquarters to Vancouver and maintain dual listing. Yet Ottawa has sought additional commitments, including domestic investment pledges and employment guarantees.
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.
Whilst the merger principally combines Chilean copper assets, Teck operates the Highland Valley copper mine in Canada.
Teck shareholders will vote on the merger on December 9. 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.
