Anglo American, Teck Plan $70B Merger Amid Canadian Regulatory Scrutiny

The proposed $70 billion merger between Canada's Teck Resources and London-listed Anglo American aims to create a combined entity, Anglo Teck, that would be headquartered in Vancouver but domiciled in the UK, with the goal of leveraging combined strengths and capital to expand copper operations. However, the deal has faced scrutiny and pushback from Canadian authorities, with Industry Minister Melanie Joly requiring proof of net benefits for Canada amid concerns about foreign takeovers hollowing out the domestic mining industry. The merger would significantly reshape the copper sector, especially in South America, where both companies hold major assets in Chile and Peru, and is expected to boost growth through projects like Quebrada Blanca and collaborations with Chile's state-owned Codelco. Anglo American and Codelco have already signed a $5 billion joint mine plan to coordinate operations at Los Bronces and Andina, enhancing output and reducing costs, potentially setting a precedent for further cooperation. Challenges remain, including gaining support from partners such as Glencore at the Collahuasi mine, where issues of valuation, profit sharing, and operational integration need resolution, complicated by past cost overruns and environmental concerns at Quebrada Blanca. Additionally, historical foreign acquisitions in Canada's mining sector have led to tighter regulations under the Investment Canada Act, which could impact the approval process for this merger.