By Megan Cheah and Paul Vieira

Mining giants Teck Resources and Anglo American have received approval from the Canadian government for a deal to create one of the world's largest copper producers.

The formation of Anglo Teck will provide "enduring benefits" for Canada, the companies said Monday. Teck is based in Vancouver, British Columbia, and the Pacific Coast city will serve as the global headquarters for the new company.

The companies have further defined proposed commitments set under the Investment Canada Act. These include Anglo Teck spending at least 4.5 billion Canadian dollars, equivalent to US$3.27 billion, in the country within five years, as well as enhancing the country's critical minerals processing capacity.

Based on the proposed commitments, Anglo Teck will spend at least C$10 billion over 15 years.

The approval is an important step forward in the formation of Anglo Teck, said Teck President and Chief Executive Jonathan Price.

"This merger will combine two world-class companies to form a business of significant scale and capability that will deliver billions in investment and drive new economic activity and job creation here in Canada and beyond," he added.

The approval came even though Canada's Industry Minister, Melanie Joly, had expressed concern about the proposed transaction, saying last month that the companies' commitments weren't enough to secure government approval. As industry minister, Joly is responsible for enforcing Canada's foreign-investment laws, which require government approval for foreign-led mergers and acquisitions to ensure they are in the country's interest.

In a statement Monday, Joly said the deal benefits the Canadian economy, adding that the companies committed to keep 4,000 employees in the country, ensure Canadians account for half of the combined economy's board for a seven-year period, and earmark hundreds of millions of dollars for indigenous communities in British Columbia.

The Anglo-Teck merger was approved by each company's shareholders earlier this month. It also received competition approvals in Canada and Australia. Other reviews are progressing.

Write to Megan Cheah at megan.cheah@wsj.com and Paul Vieira at paul.vieira@wsj.com.

(END) Dow Jones Newswires

December 15, 2025 22:53 ET (03:53 GMT)

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