Canada orders security review of Teck–Anglo mega-merger

[Ben Graham]

Canada has launched a national security review of the proposed merger between Anglo American (LON: AAL) and Teck Resources (TSX: TECK.A, TECK.B)(NYSE: TECK), Industry Minister Melanie Joly said on Wednesday.

Joly confirmed that Ottawa will assess the deal under the Investment Canada Act and issue a final decision in the coming months, saying from South Korea that the security review is a standard step in evaluating foreign transactions but that the government expects stronger long-term commitments to Canada.

The national security review, under the Investment Canada Act, will examine how the transaction could affect critical minerals and related supply chains. Copper is designated as a critical mineral in Canada.

Teck and Anglo have pledged about $4.5 billion in Canadian spending over five years, although much of that was previously announced by Teck, including the extension of the Highland Valley copper mine. 

Anglo has also offered to shift its global headquarters to Vancouver from London, rebrand as Anglo Teck, and relocate senior executives, including CEO Duncan Wanblad and CFO John Heasley.

Market insiders say Ottawa remains unconvinced and wants Anglo to go further by redomiciling to Canada, a move that would effectively transform it into a Canadian company. The push back comes after decades of foreign takeovers that stripped Canada of major mining champions, including Alcan, Falconbridge and Inco. Teck itself sold 77% of its coal business to Glencore (LON: GLEN) in 2024 for $6.9 billion, with the remainder going to Nippon Steel and POSCO.

The scrutiny on the Anglo-Teck deal reflects a tougher stance on economic security as Prime Minister Mark Carney pushes to rebuild Canada’s critical minerals capacity, which Ottawa sees as tied directly to national sovereignty.

Last-minute threat

The proposed $53 billion merger survived a brief shock last week when BHP (ASX: BHP) attempted to buy Anglo, only to withdraw its offer three days later. Shareholders of Anglo and Teck will vote on the deal Dec. 9.

If approved, the combined miner would rank among the world’s top five copper producers with annual output of 1.35 million tonnes, surpassing Escondida’s 2024 production of 1.28 million tonnes. The deal would also mark the largest mining transaction of the decade.