Proposed Teck-Anglo merger is subject to national security review, Canada says

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By David Ljunggren and Divya Rajagopal

OTTAWA (Reuters) -Canada will submit the proposed merger of Anglo American and Teck Resources to a national security review, Industry Minister Melanie Joly said on Wednesday.

Joly also said Ottawa would come to 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 told reporters from South Korea via a teleconference.

Shares of Teck were up 1% in midday trade in Toronto. Anglo American shares closed up 2.4% at the London Stock Exchange on Wednesday.

The proposed $53 billion deal, one of the biggest in the mining industry, would create a copper giant. But the deal, due to its size, needs a nod from several regulators, including in Canada. 

The top leadership of both companies has proposed to move the combined headquarters to Vancouver and maintain a dual listing. However, Ottawa has asked for more, such as investment in the country and job security.

The national security review, according to the Investment Canada Act, would look at the potential impact the transaction would have on the critical minerals and critical mineral supply chains. Copper is considered a critical mineral by Canada.

Teck also produces germanium, which is also on the critical mineral list. Canada amended the ICA in 2024 to tighten rules around any large foreign acquisition of its domestic companies and the potential impact on national security. 

Though the Anglo-Teck merger primarily combines the companies’ copper assets in Chile, Teck owns the Highland Valley copper mine in Canada. 

Teck shareholders are scheduled to vote on the merger on December 9. On Wednesday, proxy advisory firm ISS recommended that Anglo American and Teck shareholders vote in favor of the deal. 

(Reporting by David Ljunggren in Ottawa and Divya Rajagopal in Toronto; Editing by Bill Berkrot)