Further talks with CEOs of both companies will be set next week
The merger between mining companies Teck Resources Ltd. (Teck) and Anglo American PLC (Anglo) has yet to move forward following Industry Minister Mélanie Joly’s concerns about its lack of long term benefits to Canada, as reported by BNN Bloomberg.
Joly noted that while conversations have been made with the two companies, the discussed benefits to the country were currently not enough and further talks were needed.
“We need to think about longer term and how can we make sure that ultimately we create jobs, but we have a strong headquarters, not only now but also for the next decade,” said Joly.
Teck and Anglo announced its deal last week which would result to Anglo Teck, a $70 billion copper mining company. Vancouver will serve as its headquarters and will also be where their top executives are based. Part of the deal includes a commitment of $4.5 billion in spending in Canada over five years. BNN Bloomberg reported that a significant portion of the commitment have already been announced by Teck. This included the mine life extension of its copper mine in Highland Valley.
Dale Steeves, a spokesperson from Teck, said through an email to BNN Bloomberg that the merger aimed to “create a Canadian-based global critical minerals champion, with significant economic, social, and strategic benefits for Canada.”
Camden Hutchison, director of the University of British Columbia’s Centre for Business Law, noted that as negotiations continue to move between the federal government and the companies, the concerns surround both the merger’s economic impact as well as the public’s perception of the transaction.
“It’s probably important that the federal government demonstrates that they’re not asleep at the switch and just allowing Canadian companies to be taken over without any kind of scrutiny,” said Hutchison.
According to the Globe and Mail, Prime Minister Mark Carney told Anglo that it needed to move its headquarters to Canada, otherwise the merger with Teck would not be allowed to move forward. In an email, Teck Vice President of Communications and Government Affairs Doug Brown said that a multi-national mining company such as Anglo moving its global headquarters to Canada was unprecedented.
Joly is set to speak with the CEOs of both Anglo and Teck next week to continue discussing how the merger would benefit the country in the long run.
Under the Investment Canada Act, deals by non-Canadians such as the Anglo and Teck merger are to be reviewed whether or not it is against national interest.
