By Divya Rajagopal TORONTO, Dec 16 (Reuters) - Canada's swift approval of the $53 billion merger between British miner Anglo American and Canada's Teck Resources signals a push to attract investment
Canada's Swift Approval of Anglo-Teck Merger Shows Pro-Business Shift
By Divya Rajagopal
TORONTO, Dec 16 (Reuters) - Canada's swift approval of the $53 billion merger between British miner Anglo American and Canada's Teck Resources signals a push to attract investment to offset the impact of U.S. tariffs, dealmakers told Reuters.
Late Monday night, Melanie Joly, Canada's Innovation, Science, and Economic Development Minister, said that Canada has approved the all-share buyout of Teck Resources by Anglo American under the Investment Canada Act, clearing a regulatory hurdle to create a global copper heavyweight.
Joly said in a statement that the deal benefits Canada. Her office did not respond to further requests for comment.
Canada approved the deal in about three months, much faster than normal for mergers of this size in the mining sector.
The rapid approval signals a significant shift in Ottawa's approach to foreign takeovers, particularly in the sensitive critical minerals sector. Analysts say the government is prioritizing attracting capital over lengthy reviews as it contends with the challenging trade environment created by U.S. President Donald Trump.
Anglo-Teck said it made a series of concessions to the government, including a commitment to spend C$4.5 billion in Canada within five years.
Canadian lawyers said the faster approval is part of Prime Minister Mark Carney's efforts to show the world that Canada is open for business.
"Business investments follow one truth - minimise uncertainty," said Calvin Goldman, the former head of Canada's Competition Bureau, who now runs his own advisory firm on national security reviews and foreign investment in Canada. "And what the Canadian government is trying to signal with this assessment is that it will reduce uncertainty; it sends a good message," Goldman added.
The Investment Canada Act, which guides approvals for mergers and acquisitions in the country, established a high bar for approving deals involving critical minerals.
Canada took eight months in 2024 to approve Glencore's $7 billion acquisition of miner Teck Resources' steelmaking coal unit with strict conditions to preserve jobs.
Joly's predecessor had said Canada would approve any deals involving critical minerals only under "exceptional circumstances."
"Those statements from the previous minister were made before Canada faced the daunting economic challenges as a result of the tariff war," said Sandy Walker, partner at Dentons Canada.
"This government now seems highly motivated to encourage investment and economic activity," Walker added.
However, in Canada, the popular opinion toward foreign ownership of mining companies remains contentious.
A poll conducted by Ipsos in October this year found that most Canadians believed that the federal government should ensure foreign buyers are not able to purchase Canadian companies in the natural resources sector, such as mining, oil and gas.
(Divya Rajagopal in Toronto; Editing by Caroline Stauffer and Lisa Shumaker)
