Canada’s federal government has cleared Anglo American’s (LSE: AAL) proposed combination with Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK) on national security grounds, The Globe and Mail reported, citing an unidentified person familiar with the matter.
Ottawa’s initial 45-day review period elapsed without an extension, which means that the transaction has been cleared on national security grounds by default, the newspaper said. A spokesperson for Canadian Industry Minister Mélanie Joly couldn’t immediately provide a comment, the paper said.
Joly had told reporters Wednesday that Ottawa would assess the deal under the Investment Canada Act and issue a final decision in the coming months.
Net benefit review
Canada still has the power to block the deal if it fails a net economic benefit test, the Globe said. Similar reviews in the past have been known to exceed six months, the paper said.
The national security review was due to examine how the transaction could affect critical minerals and related supply chains. Copper is designated as a critical mineral in Canada.
London-based Anglo filed its paperwork with Ottawa for review on Sept. 19, the Globe said. Ottawa would have had to notify Anglo to extend the probe if security concerns had persisted after a 45-day period, the newspaper said.
Teck shareholders are scheduled to meet to vote on the deal next month. At least two-thirds of votes cast must be in favour for the deal proceed.
