Canadian authorities approve Anglo and Teck mining merger
Canadian regulators have approved the merger of British-South African producer Anglo American and Canadian producer Teck Resources, enabling the pair to form a global Canadian business producing iron ore, copper, zinc and coking coal.
Anglo Teck, the combined company, will spend 4.5 billion Canadian dollars (3.3 billion U.
S. dollars) in Canada over the next five years and 10 billion Canadian dollars over 15 years in accordance with obligations arising from the Canada Investments Act, Anglo American told investors on December 16.
The short-term expenses of the combined company will be used to support projects for the extraction of germanium, copper and other important minerals (see the table), as well as research and community projects.
Anglo Teck will also keep the employment rate in Canada unchanged for an indefinite period and list its shares on the Toronto Stock Exchange, Anglo American said.
Anglo American and Teck Resources shareholders approved a $53 billion merger on December 11. But the deal is still being criticized by competitors in many countries where the two companies operate.
Anglo Teck will become one of the world's five largest copper producers, Jonathan Pryce, executive director of Teck Resources, said on September 9 when he announced the deal.
Teck Resources plans to produce 415,000-465,000 tons of copper, 525,000-575,000 tons of zinc, 3,500-4,800 tons of molybdenum and other metals in 2025, according to an October 8 statement. Anglo American also plans to produce 690,000-750,000 tons of copper and 57-61 million tons of iron ore during the year.
Anglo American intends to implement plans to sell its diamonds, coking coal and nickel before closing the deal, which was supported by Teck Resources. The American producer Peabody Energy in August rejected a deal to buy Anglo American's Australian assets for the production of coking coal worth $ 3.8 billion.
Approval of the Anglo Teck merger also came less than a month after Australian producer BHP submitted and withdrew an offer to buy Anglo American.