Anglo-Teck deal hangs on redomiciling: Globe

The federal government is pressuring Anglo American (LSE: AAL) to become legally Canadian on top of moving its headquarters to Vancouver as it scrutinizes the British miner’s $50-billion (C$69-billion) bid for Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK), The Globe and Mail reported, citing two people familiar with discussions. 

Anglo American has offered some concessions to secure federal approval, such as relocating key leadership to a new global office in Vancouver and adopting the name Anglo Teck.

But Ottawa wants the further legal step, called redomiciling, and a primary stock listing in Toronto, the sources told The Globe and Mail this week. That would mean falling under Canadian rules for taxes, mergers and acquisitions, and financial reporting. The paper didn’t identify the people because they weren’t authorized to speak publicly on the matter. 

Anglo CEO Duncan Wanblad told the paper in September when the deal was announced that the company wouldn’t redomicile nor move its stock listing. Industry Minister Mélanie Joly said then that Anglo’s promises on the headquarters and staff in Vancouver weren’t enough. 

Economic Benefits

Joly is in charge of assessing the economic benefits for Canada and potential national security implications of Anglo’s all-stock deal for Vancouver-based Teck. The government must contend with the legacy of foreign takeovers of major Canadian mining companies in the past 20 years as Prime Minister Mark Carney seeks to burnish the country’s critical minerals credentials versus industry dominant China. 

Brazil’s Vale (NYSE: VALE) bought Inco in 2006, Anglo-Australian Rio Tinto (NYSE, LSE, ASX: RIO) acquired Alcan the next year and Glencore (LSE: GLEN) of Switzerland took over Falconbridge in 2013. 

Franco-Nevada (TSX, NYSE: FNV) co-founder Pierre Lassonde has spoken against the Anglo-Teck deal as another loss for Canada. 

Ottawa’s review of the Anglo-Teck deal is likely to extend into 2026. Shareholders from both companies will vote Dec. 9 on the proposal, with Teck needing approval from at least two-thirds of votes cast.