Canada to Review Anglo American-Teck Merger Amid National Security Concerns

Canada is set to review the proposed merger of Anglo American and Teck Resources for national security reasons. This $53 billion deal could create a copper giant, but must pass multiple regulatory checks, including Canada's. Canadian law will examine the merger's impact on critical minerals and supply chains.

Industry Minister Melanie Joly announced on Wednesday that Canada would subject the proposed merger of Anglo American and Teck Resources to a national security review, adhering to the guidelines of the Investment Canada Act.

The $53 billion merger, one of the mining industry's largest deals, aims to form a leading copper entity. However, it requires approval from regulators, including those in Canada. The companies plan to establish their merged headquarters in Vancouver will maintain a dual stock market listing, but Ottawa demands more, seeking commitments on domestic investment and employment preservation.

The review will focus on the deal's potential consequences on Canada's critical minerals and their supply chains. While primarily melding copper assets from Chile, the merger also involves the Highland Valley copper mine in Canada, positioning copper and germanium under scrutiny as they are regarded as critical minerals by Canada. A decisive vote by Teck shareholders is scheduled for December 9.

(With inputs from agencies.)