Anglo American and Teck Resources secure Canada approval for R122bn merger deal

ANGLO American and Teck Resources have detailed commitments they made to the Canadian government, including plans to spend about R121.7 billion over 15 years, as part of their receiving approval from that government for their merger under the Investment Canada Act.

- EDWARD WEST

ANGLO American's Quellaveco copper mine in Peru. The group said their planned merger with Canada's Teck Resources has received the approval of the Canadian government. I SUPPLIED

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The merger, announced first on September 9, is expected to provide “exceptional and enduring benefits for Canada, founded upon establishing a global critical minerals champion headquartered in Canada," a statement from the group said Wednesday.

Anglo America’s share price gained 2% on the JSE Wednesday around midday to R851.71, which with a 53.6% gain in the price over 12 months, is evidence of investor support for the deal.

Anglo American and Teck committed to spend at least C$4.5bn (about R54.8bn) in Canada in 5 years, including for the Highland Valley Copper mine life extension, enhancing minerals processing at Trail, and advancing the Galore Creek and Schaft Creek copper projects in northwestern British Columbia.

"Such expenditures will enable Anglo Teck to spend...at least C$10bn in Canada over 15 years," the group directors said.

"Today's confirmation by Minister of Industry, Mélanie Joly, marks another step towards forming a major global critical minerals powerhouse, following the overwhelming endorsement of both our and Teck’s shareholders last week." Anglo American CEO Duncan Wanblad said in a statement.