Ottawa is testing its new critical minerals policy by pressing Anglo American for full redomiciling to Canada, not just a symbolic headquarters shift.
The proposed $53 billion merger between Canada’s Teck Resources and the UK’s Anglo American has hit a major regulatory hurdle after Canada’s federal government formally launched a national security review under the Investment Canada Act (ICA). This move, announced by Industry Minister Melanie Joly, signals that Ottawa is not yet satisfied with Anglo American’s substantial concessions and is holding the line on protecting domestic control over critical mineral assets.
The review is laser-focused on the impact the transaction could have on Canada’s critical minerals supply chains, particularly copper, which is central to the global energy transition and a key part of the government’s sovereignty agenda. If approved, the merger would create Anglo Teck, a mining giant poised to be one of the world's top five copper producers, with annual output estimated at 1.35 million tonnes.
To secure approval, Anglo American has offered a considerable package: a pledge of $4.5 billion in Canadian spending over five years, the relocation of its global headquarters to Vancouver, the adoption of the Anglo Teck name, and the commitment to base its top executives, including the CEO and CFO, in Canada.
However, media sources indicate Ottawa views these promises as insufficient. The government is reportedly pushing for full redomiciling, a legal step that would transform Anglo American into a genuinely Canadian entity, subjecting it to Canadian tax laws and financial regulations. This demand reflects a national policy shift, driven by Prime Minister Mark Carney, to reverse decades of foreign takeovers that have stripped Canada of its mining champions—a history that includes the losses of Alcan, Falconbridge, and Inco, and, more recently, the sale of Teck’s coal business to Glencore in 2024.
Minister Joly, speaking from South Korea, emphasized that while a security review is standard procedure, the government expects "stronger long-term commitments to Canada" before granting its final decision in the coming months. The review is a direct application of strengthened 2024 amendments to the ICA, designed to scrutinize large foreign acquisitions with potential national security implications.
The regulatory uncertainty looms large as the merger heads toward a crucial shareholder vote on December 9.
The positive shareholder sentiment comes on the heels of a brief, dramatic challenge from Australian rival BHP, which attempted a last-minute acquisition of Anglo American but quickly withdrew its offer, leaving the path clear for the Teck combination. Ultimately, the future of the largest mining transaction of the decade—and the creation of a global critical minerals champion—hinges on whether Anglo American can meet Canada’s demanding price for national sovereignty.
