Canadian Prime Minister Mark Carney has made the relocation of Anglo American PLC (LSE:AAL)'s global headquarters to Canada a condition for approving its proposed acquisition of Teck Resources Ltd (TSX:TECK.B), the Globe and Mail reported, citing two people familiar with the matter.
The London-based miner last week unveiled a $53 billion all-stock takeover bid for Teck, which would rank among the largest transactions in the sector.
Anglo American and Teck said the combined company would be headquartered in Canada, under the name Anglo Teck, while retaining a primary listing in London.
According to the Globe and Mail, Carney emphasized in discussions with Anglo American that the headquarters requirement would apply to any prospective buyer of Teck.
The sources requested anonymity because they were not authorized to discuss the matter publicly.
Doug Brown, Teck’s vice-president of communications and government affairs, told the Globe and Mail that “it is unprecedented for a major multi-national mining company to move its global headquarters to Canada in this fashion.”
An Anglo American spokesperson declined to comment directly on Carney’s reported condition but highlighted CEO Duncan Wanblad’s earlier statement that Vancouver is the “natural location” for the combined entity.
"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," the spokesperson added in a statement.