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Industry Minister Mélanie Joly has approved the merger of Canadian mining company Teck Resources Ltd. and British Anglo American PLC.
In her statement, Jolie said she had determined the merger would be a net benefit for Canada and called it a “significant win.”
Teck and Anglo American announced approval of the deal in separate statements, calling the deal a “merger of equals” even though Anglo American is worth more than double Teck.
Shareholders last week gave their blessing to the plan, which was first announced in Septemberto create Anglo Teck, a $70 billion copper mining company.
This is a huge shake-up in the world of mining. Two giants are merging to become one, and Jennifer Norvell, headquartered right here in British Columbia, has more to say about the winners and losers in the American Teck-Anglo marriage.
Under the terms of the approval, the company will be headquartered in Vancouver, as will most of the company's executives and board members.
Joly says the companies agreed to a number of commitments, including bringing about 4,000 jobs to Canada and spending $4.5 billion in Canada over five years.
“This is an unequivocal endorsement of the federal government's efforts to build the strongest economy in the G7,” Joly said in a statement Monday.
“Anglo Teck, headquartered in Vancouver, will be a true Canadian champion on the world stage.”
Great news for British Columbia – new mining giant Anglo Teck will be the largest company in the history of our province. They will help bring prosperity to the North West and provide good jobs and benefits across the province. Welcome, Anglo Tech!https://t.co/avncfdksHm
In a post on social media, British Columbia Premier David Eby called the move “great news.”
“The new mining giant Anglo Teck will be the biggest company in the history of our province,” he said.
“They will help build prosperity for the North West and provide good jobs and benefits across the province.”
Teck CEO Jonathan Price said the approval will help build a “global champion for critical minerals.”
Teck says completion of the merger “remains subject to conditions customary for transactions of this nature, including applicable regulatory approvals in various jurisdictions around the world.”
It said the merger has already received competition approval in Canada and Australia and other reviews are ongoing.
