Anglo American PLC (LSE:AAL) and Teck Resources Ltd (USA) (TSX:TCK) have received approval from Canadian government for their proposed merger, clearing a key regulatory hurdle for the creation of Anglo Teck.
The approval includes binding commitments from the company to invest at least C$4.5 billion in Canada within five years, supporting projects such as the Highland Valley Copper mine extension and critical mineral developments in British Columbia. The total investment over 15 years is expected to exceed C$10 billion.
Duncan Wanblad, CEO of Anglo American, said: "Today's confirmation by Minister of Industry, the Honourable Mélanie Joly, marks yet another step towards forming a major global critical minerals powerhouse, following the overwhelming endorsement of both our and Teck's shareholders last week.
"Anglo Teck represents a significant investment in Canada, its people and its natural resources, underpinned by a comprehensive package of commitments designed to drive enduring economic and wider benefits associated with a thriving mining ecosystem in British Columbia, and in Canada as a whole."
The merger received shareholder approval on 9 December and has already passed competition reviews in Canada and Australia.
Further regulatory approvals remain outstanding.
Upon completion, Anglo Teck will be headquartered in Vancouver and maintain listings on the London, Toronto, Johannesburg and New York stock exchanges.