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| Anglo American and Tech Resources Copper |
Ottawa Initiates National Security Review on Teck–Anglo Deal
Canada has launched a national security review of the proposed $53 billion merger between Anglo American and Teck Resources. Ottawa will assess the transaction under the Investment Canada Act. However, officials emphasized that long-term commitments to Canada’s critical mineral sector are crucial for approval. Copper, designated a critical mineral, is central to the review.
Strategic and Economic Implications of the Merger
The merger would create one of the world’s top five copper producers, with annual output exceeding 1.35 million tonnes. Meanwhile, Teck and Anglo pledged $4.5 billion in Canadian investment over five years. However, Ottawa may demand Anglo redomicile to Canada, ensuring strategic control over critical mineral supply chains. This move signals a stricter stance on foreign takeovers affecting national sovereignty.
Industry Outlook and Market Considerations
The deal highlights Canada’s push to rebuild domestic mining capacity. In contrast, previous foreign takeovers weakened Canada’s mining champions, including Alcan, Falconbridge, and Inco. As a result, the merger’s approval is uncertain, and investors should monitor regulatory developments. The transaction also emphasizes the growing global focus on securing critical raw materials, including copper.
ScrapInsight Commentary
The security review underscores Canada’s tightening control over critical minerals. Approval may hinge on Anglo’s commitment to domestic operations. Copper markets could face volatility depending on the merger outcome, emphasizing strategic resource security and investment risks.
