Canada clears way for $53B Anglo-Teck merger, creating new copper giant

Canada has approved the $53B Anglo-Teck merger, paving the way for a new global copper giant anchored in Vancouver with major investment commitments.

The Canadian government has approved the $53-billion merger between Anglo American and Teck Resources, clearing a key hurdle for the creation of one of the world’s largest copper producers just as global demand for the metal accelerates.

Industry minister Mélanie Joly had already signed off on the deal on national security grounds in November, but Ottawa still needed to determine that the transaction delivers a “net benefit to Canada” under tightened foreign investment and takeover rules.

That requirement triggered weeks of negotiations over a package of legally binding commitments from Anglo American to secure federal approval.

Anglo to move HQ to Vancouver and commit up to C$10B

As part of the undertakings agreed with the federal government, Anglo American will:

• Move its global headquarters to Vancouver from London.
• Invest at least C$4.5 billion (US$3.2 billion) in Canada over the next five years.
• Increase that commitment to a minimum of C$10 billion (US$7.3 billion) over 15 years.
• Allocate at least C$100 million (US$73 million) to:
• A global Institute for Critical Minerals Research and Innovation, and
• Expanded mining-related skills and training programs for Indigenous communities and Canadian post-secondary institutions.

Joly said the commitments will drive growth, jobs and innovation while bolstering Canada’s strategic position in critical minerals.

Ottawa completed its review in just over three months, faster than many in the market expected. By comparison, it took roughly eight months for the federal government to approve Glencore’s acquisition of Teck’s coal business in 2024.

Building a global critical minerals leader

Anglo American CEO Duncan Wanblad hailed the Canadian approval as another major step towards creating a “global critical minerals leader”, noting strong shareholder backing on both sides.

Teck president and CEO Jonathan Price, who will become second-in-command in the combined group, said the merger would unlock billions in fresh investment and generate new economic activity in Canada and abroad.

Shareholders in both companies approved the transaction last week, making the Anglo-Teck tie-up the second-largest mining deal on record, behind only Glencore’s US$90-billion merger with Xstrata in May 2013.

Listings and market value

The merged company, Anglo Teck, will:

• Retain its primary listing in London, preserving inclusion in FTSE UK indices.
• Maintain additional listings on the JSE, TSX and NYSE.

Shares of both Anglo American and Teck have risen since the deal was announced, lifting their combined market value to about US$60 billion as of Tuesday.

Regulatory hurdles remain as antitrust scrutiny widens

While the merger has now secured key approvals in Canada and Australia, regulatory reviews are still ongoing in multiple jurisdictions. Anglo American has said the full approval process could take up to 18 months.

Analysts at Jefferies cautioned that regulators elsewhere could still raise objections, given copper’s status as a supply-constrained critical mineral.

Authorities in Europe, Japan, South Korea, the US, Chile and China are examining the deal over potential antitrust concerns, including whether too much market power in copper would be concentrated in a single company.

If completed, Anglo Teck would control just under 5% of the global copper market—a relatively modest share on paper, but significant in a market already grappling with tight supply, rising demand and higher strategic scrutiny from governments worldwide.