Canadian anti-trust regulator to review Anglo American-Teck merger

Competition Bureau Canada has announced plans to review the proposed merger between Anglo American and Teck Resources.

The review will focus on potential anti-competitive impacts and involve consultations with suppliers, competitors and purchasing groups.

The $53bn (C$72.85bn) merger agreement, announced last week, aims to create a new entity, Anglo Teck, as a Canada-based global critical minerals producer.

Both companies assert that the merger will deliver substantial benefits to shareholders and stakeholders by improving portfolio quality, resilience and strategic positioning.

Anglo Teck intends to harness the combined technical and operational expertise of both companies to achieve significant growth.

The merger is projected to generate around $800m (£585.61m) in annual pre-tax synergies by the end of the fourth year after completion, with most of the efficiencies expected within two years.

Competition Bureau Canada senior communications adviser Marianne Blondin, in an emailed statement to Reuters, said: “I can confirm that the proposed Teck-Anglo merger will be reviewed by the Competition Bureau.”

According to the Globe and Mail report, Canada’s Prime Minister, Mark Carney, has stipulated that Anglo American must relocate its headquarters to Canada to proceed with the acquisition of Teck Resources.

Anglo American has confirmed that it will move its headquarters to Vancouver after closing the deal.

Carney also indicated that the requirement would apply to any company seeking to acquire Teck Resources, the report said.

An Anglo American spokesperson, in an emailed statement, told Reuters: “Anglo American has also had its Americas exploration team based out of Vancouver for a long time, so we are very familiar with the setup.”

“Canadian anti-trust regulator to review Anglo American-Teck merger ” was originally created and published by Mining Technology, a GlobalData owned brand.

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