OTTAWA, Nov 26 (Reuters) - Canada will submit the
proposed merger of Anglo American and Teck Resources ( TECK )
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.