Canada offers inexperienced gentle to £40bn Anglo Teck mining merger

The £40billion merger of mining giants Anglo American and Teck Resources has been given the green light by the Canadian government.

Canada’s approval clears the way for the creation of one of the world’s largest copper producers after the firms agreed to bolster investment in the country.

Shareholders earlier this month approved the sector’s second-largest deal ever to create a Anglo Teck, which will be based in Vancouver but maintain its primary share listing on the London Stock Exchange.

Anglo Teck has agreed to spend at least C$4.5billion (£2.4billion) in Canada within the next five year and a total of ‘at least’ C$10 billion over the next 15 years.

President and CEO of Teck Jonathan Price, who will be second in command of the merged business, said the deal ‘will deliver billions in investment and drive new economic activity and job creation here in Canada and beyond’.

He added: ‘Establishing Anglo Teck here in Vancouver is wholly aligned with government’s economic focus and will help to further elevate Canada’s role and impact on the global critical minerals stage, creating benefits for communities, indigenous peoples, employees and all stakeholders.’

Anglo Teck will maintain a primary listing on the London Stock Exchange 

It comes after Anglo American succumbed to investor pressure and abandoned plans to hand boss Duncan Wanblad an £8.5million bonus upon completion of the merger.

The FTSE 100 firm said last week it ‘engaged extensively with shareholders’ who ‘raised a number of concerns’ regarding the payout.

Wanblad, who will serve as CEO of Anglo Teck, said: ‘Anglo Teck represents a significant investment in Canada, its people and its natural resources, underpinned by a comprehensive package of commitments designed to drive enduring economic and wider benefits associated with a thriving mining ecosystem in British Columbia, and in Canada as a whole.

‘We are all committed to preserving and building on the proud heritage of both companies, in Canada, as home to Anglo Teck’s global headquarters, in South Africa where our commitment to investment and national priorities endures, and across our entire global operational and commercial footprint.

‘We look forward to continuing our commitment to engage meaningfully with all stakeholders, including indigenous peoples and communities, as Anglo Teck.

‘Together, Anglo Teck will be at the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.’