Anglo American–Teck Merger Clears Canadian Hurdle

JOHANNESBURG – The long-anticipated merger between Anglo American and Teck Resources has crossed a major regulatory milestone, with the Government of Canada approving the Investment Canada Act. The decision clears a key obstacle in the proposed ‘merger of equals’ that was first announced in September 2025 and brings the creation of a new global mining heavyweight, to be known as Anglo Teck, firmly into view.

The approval, confirmed on 16 December, follows months of scrutiny by Canadian authorities and comes just days after shareholders of both companies overwhelmingly backed the transaction. While further regulatory approvals are still required in other jurisdictions, Canada’s green light is arguably the most politically and strategically significant, given that the merged entity will be headquartered in Vancouver.

A merger years in the making

The Anglo American–Teck deal did not emerge in a vacuum. It is the culmination of broader shifts underway in the global mining industry, driven by surging demand for critical minerals such as copper, nickel and other inputs essential to the energy transition, electrification and decarbonisation.

Anglo American, one of the world’s largest diversified mining companies, has in recent years been reshaping its portfolio to focus on what it calls “future-enabling” commodities. This has included the sale of its steelmaking coal and nickel businesses and the planned separation of De Beers.

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Teck, meanwhile, has been positioning itself as a leading North American supplier of copper and critical minerals, while navigating takeover interest and shareholder pressure over its strategic direction.

Against this backdrop, the merger of equals was framed by both companies as a way to build scale, resilience and long-term growth in a sector facing rising capital costs, tighter environmental scrutiny and intensifying geopolitical competition over resources.

Why Canada matters

Canada’s approval under the Investment Canada Act was always going to be decisive. Teck is a national mining champion, and Ottawa has become increasingly assertive in ensuring that foreign-backed transactions deliver clear domestic benefits, particularly in sectors linked to national security and critical supply chains.

To secure approval, Anglo American and Teck agreed to a detailed and legally binding package of commitments. Central among these is the decision to base Anglo Teck’s global headquarters in Canada and to anchor senior leadership in the country. The chief executive, deputy CEO and chief financial officer will all be based in Canada, alongside a board with substantial Canadian representation.

The companies have also committed to maintaining a listing on the Toronto Stock Exchange and pursuing inclusion in Canadian indices, reinforcing the country’s role as the centre of gravity for the new group.

Beyond governance, the investment pledges are significant. Anglo Teck has committed to spending at least C$4.5 billion in Canada within the first five years following completion, with total spending of no less than C$10 billion over 15 years. These funds will support mine life extensions, processing capacity, exploration and the advancement of major copper projects in British Columbia, including Galore Creek and Schaft Creek.

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The Canadian government’s approval is also underpinned by commitments on jobs, skills and community engagement. Anglo Teck has pledged to maintain existing employment levels at Teck’s Canadian operations and to expand youth employment and training opportunities.

Importantly, the company has committed to honouring all existing agreements with Indigenous governments, communities and labour unions, and to investing at least C$200 million in Indigenous and community initiatives. This reflects the growing importance of social licence and reconciliation in Canada’s mining sector, where projects increasingly depend on meaningful partnerships with Indigenous Peoples.

The merger also includes plans to invest at least C$100 million in research, skills development and the establishment of a Global Institute for Critical Minerals Research and Innovation, linking institutions in Canada, South Africa and the United Kingdom.

South Africa remains in focus

While Canada will host Anglo Teck’s headquarters, the companies have been careful to stress that the merger does not diminish Anglo American’s longstanding commitments to South Africa. In a separate set of undertakings, Anglo Teck has reaffirmed its intention to comply fully with South African empowerment and mining licence requirements and to maintain meaningful South African representation at board and executive level.

The group has also committed to supporting junior mining and exploration in South Africa and southern Africa, including a planned ZAR600 million contribution to South Africa’s Junior Mining Exploration Fund, in partnership with the Industrial Development Corporation and the Department of Mineral and Petroleum Resources.

This dual focus on Canada and South Africa reflects the merged company’s global footprint and the political sensitivities that accompany large cross-border mining transactions.

With shareholder approval secured and Canadian and Australian competition clearances already in hand, attention now turns to the remaining regulatory reviews in other jurisdictions. These are described as customary, but they will still take time and could shape the final timing of the transaction.

Once completed, Anglo Teck will be listed on the London Stock Exchange, with secondary listings on the JSE, TSX and NYSE. The group is expected to emerge as one of the world’s leading producers of copper and other critical minerals, at a time when governments are scrambling to secure supply chains and reduce dependence on a narrow set of producing countries.

For the mining industry, the deal signals a renewed wave of consolidation, driven less by short-term commodity cycles and more by long-term structural demand. For Canada, it represents a bet that anchoring a global mining champion at home will deliver jobs, investment and strategic influence in a resource-hungry world.