Anglo-Teck Deal Derisked After Canadian Approval — Market Talk

• 16 December 2025

• Anglo American and Teck receive Government of Canada approval for merger of equals under Investment Canada Act

Anglo American plc ("Anglo American") and Teck Resources Limited ("Teck") have received regulatory approval from the Government of Canada under the Investment Canada Act ("ICA") for the merger of equals between Anglo American and Teck which was announced on 9 September 2025. Anglo American and Teck believe that the formation of Anglo Teck in a merger of equals will provide exceptional and enduring benefits for Canada, founded upon establishing a global critical minerals champion headquartered in Canada.

Anglo American and Teck set out a number of proposed commitments in their September transaction announcements which have been further defined into a set of binding commitments under the ICA. The commitments include that Anglo Teck will spend at least C$4.5 billion in Canada within 5 years, including in connection with the Highland Valley Copper mine life extension, enhancing critical minerals processing capacity at Trail, and advancing the development of the Galore Creek and Schaft Creek copper projects in northwestern British Columbia. Such expenditures will enable Anglo Teck to spend a total of at least C$10 billion in Canada over 15 years. A summary of the agreed commitments is set out in Appendix 1.

Duncan Wanblad, CEO of Anglo American, said: "We are delighted to receive regulatory approval from the Government of Canada for our merger of equals with Teck. 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.

"We are all committed to preserving and building on the proud heritage of both companies, in Canada, as home to Anglo Teck's global headquarters, in South Africa where our commitment to investment and national priorities endures, and across our entire global operational and commercial footprint. We look forward to continuing our commitment to engage meaningfully with all stakeholders, including Indigenous Peoples and communities, as Anglo Teck. Together, Anglo Teck will be at the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals."

Jonathan Price, President and CEO of Teck, said: "The Government of Canada's approval is an important step forward in the formation of Anglo Teck-a new global critical minerals champion headquartered in Canada. 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.

"Canada - and British Columbia - are recognised worldwide as strong mining jurisdictions with critical minerals strategies focused on creating a positive environment to attract new investment and growth in responsible mining. Establishing Anglo Teck here in Vancouver is wholly aligned with government's economic focus and will help to further elevate Canada's role and impact on the global critical minerals stage, creating benefits for communities, Indigenous Peoples, employees and all stakeholders."

The merger of Anglo American and Teck was approved by each company's shareholders at meetings held on 9 December. Completion of the merger remains subject to conditions customary for a transaction of this nature, including relevant competition and regulatory approvals in various jurisdictions globally. The merger has already received competition approvals in Canada and Australia, and other reviews are progressing.

Following completion, Anglo Teck will have its headquarters in Vancouver and will have its primary listing on the LSE, retaining FTSE UK index inclusion, as well as listings on the JSE, TSX and NYSE1.

Appendix 1: Investment Canada Act commitments

Anglo American and Teck have agreed to binding commitments with the Government of Canada under the ICA, as summarised below.

Commitments a. to f. will remain in place in perpetuity:

a.     The name of the combined global business will be Anglo Teck.

b.     Anglo Teck's global headquarters will be in Canada.

c.     A significant majority of Anglo Teck's senior management will be based in Canada, including the CEO, Deputy CEO, and CFO as executive directors who will have their principal office and reside primarily in Canada.

d.     A substantial proportion of Anglo Teck plc's board of directors will be Canadian, comprising Anglo Teck executive directors residing primarily in Canada referred to above, and Canadians.

e.     Anglo Teck will further the leading environmental and social practices of both Teck and Anglo American in Canada and promote within its organisational culture a recognition of the importance of respecting Indigenous and community rights. Specifically, Anglo Teck will honour all existing agreements in Canada with communities, Indigenous governments and labour unions, in accordance with their terms.

f.      Anglo Teck will have a listing on the TSX, subject to approval of the TSX, and will seek TSX index inclusion.

Investing in Canada

The following commitments (g. to q.) are time-limited in duration:

g.     Anglo Teck will spend at least C$4.5 billion in Canada within 5 years, including in connection with the initiatives described below. Such expenditures will enable Anglo Teck to spend a total of at least C$10 billion in Canada over 15 years.

h.     Anglo Teck will proceed with the Highland Valley Copper Mine Life Extension ("HVC MLE") Project, requiring expected capital investment of approximately C$2.1 to C$2.4 billion over the term of the HVC MLE.

i.      Anglo Teck will make capital investments of up to C$850 million to sustain and enhance critical minerals processing capacity at Teck's Trail Operations, including the potential expansion of production of germanium and other strategic metals, in part subject to proceeding with the Red Dog Mine life extension project. These investments will contribute to enhancing critical minerals supply.

j.      Anglo Teck will advance the development of the Galore Creek and Schaft Creek copper projects in northwestern British Columbia, including capital expenditures of up to C$750 million.

k.     Anglo Teck will cause expenditures to be made of at least C$300 million in Canadian critical mineral exploration and technology, including expanding support to Canadian junior mining companies through partnerships across Anglo Teck's global operating footprint, particularly in South Africa and Southern Africa.

l.      Anglo Teck will cause expenditures of at least C$100 million to be made in Canada, including to establish and fund a Global Institute for Critical Minerals Research and Innovation - hosted and involving leading institutions in Canada, South Africa and the UK - and invest in mining-related skills training by leveraging partnerships with Indigenous skills training programmes and Canadian post-secondary institutions.

m.    Anglo Teck will maintain and enhance existing commitments to Indigenous governments, communities, conservation, and other similar initiatives, including by contributing at least C$200 million to such initiatives.

n.     Anglo Teck will maintain 100% of the aggregate employment levels at Teck's Canadian operations and increase the level of youth employment and training opportunities.

o.     Anglo Teck will provide Canadian and Indigenous suppliers with fair and equal opportunity to compete for contracts to supply goods and services to Anglo Teck's Canadian and global operations.

p.     Anglo Teck will explore opportunities to add copper production capacity at Trail Operations and complete a study assessing the viability of constructing a new copper smelter in British Columbia.

q.     Anglo Teck will continue and maintain Teck's remediation and reclamation activities at Teck controlled sites.

Appendix 2: Commitments to South Africa

The merger to form Anglo Teck is designed to build a stronger, larger global critical minerals company that is positioned to invest and grow across the merged company's global operational and project footprint, including in South Africa. Anglo American has a long and proud history of contributing to the economic growth of South Africa and supporting the country's national priorities. Anglo American continues to reaffirm its enduring commitment to South Africa, including in relation to meaningful representation from South Africa on the board and executive team, and the investments it is making in its operations and in the social fabric of local communities. Following the merger, Anglo Teck will continue to uphold and advance these commitments. Its subsidiaries with operations in South Africa will continue to comply with all relevant empowerment and mining licences requirements.

Furthermore, Anglo Teck will continue to support and partner with the Canadian junior mining sector, an important part of Canada's mining ecosystem, including through a combination of equity participation, strategic partnerships and the provision of technical, commercial and operational guidance, to invest in mineral exploration projects in Canada and across Anglo Teck's global operating footprint, with a specific commitment to supporting partnerships in South Africa and southern Africa. As part of the effort to support the junior mining sector, Anglo Teck also plans to make a financial contribution of ZAR600 million to South Africa's Junior Mining Exploration Fund in partnership with the Industrial Development Corporation of South Africa and the South African Department of Mineral and Petroleum Resources, which seeks to assist qualifying junior miners to conduct prospecting work.

Anglo Teck has also undertaken to support the establishment of, and provide funding to, a Global Institute for Critical Minerals Research and Innovation, hosted and involving leading institutions in Canada, South Africa and the UK.

Notes:

1 Listings are subject to the approval or clearance from each applicable exchange. NYSE listing to be implemented as a listing of American Depositary Receipts.

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Notes:

Anglo American is a leading global mining company focused on the responsible production of copper, premium iron ore and crop nutrients - future-enabling products that are essential for decarbonising the global economy, improving living standards, and food security. Our portfolio of world-class operations and outstanding resource endowments offers value-accretive growth potential across all three businesses, positioning us to deliver into structurally attractive major demand growth trends.

Our integrated approach to sustainability and innovation drives our decision-making across the value chain, from how we discover new resources to how we mine, process, move and market our products to our customers - safely, efficiently and responsibly. Our Sustainable Mining Plan commits us to a series of stretching goals over different time horizons to ensure we contribute to a healthy environment, create thriving communities and build trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for our shareholders, for the benefit of the communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining to improve people's lives.

Anglo American is currently implementing a number of major structural changes to unlock the inherent value in its portfolio and thereby accelerate delivery of its strategic priorities of Operational excellence, Portfolio simplification, and Growth. The sale of our steelmaking coal and nickel businesses and the separation of our iconic diamond business (De Beers) continue to progress and, once completed, will focus Anglo American on its world-class resource asset base in copper, premium iron ore and crop nutrients.

www.angloamerican.com

Group terminology

In this document, references to "Anglo American", the "Anglo American Group", the "Group", "we", "us", and "our" are to refer to either Anglo American plc and its subsidiaries and/or those who work for them generally, or where it is not necessary to refer to a particular entity, entities or persons. The use of those generic terms herein is for convenience only, and is in no way indicative of how the Anglo American Group or any entity within it is structured, managed or controlled. Anglo American subsidiaries, and their management, are responsible for their own day-to-day operations, including but not limited to securing and maintaining all relevant licences and permits, operational adaptation and implementation of Group policies, management, training and any applicable local grievance mechanisms. Anglo American produces group-wide policies and procedures to ensure best uniform practices and standardisation across the Anglo American Group but is not responsible for the day to day implementation of such policies. Such policies and procedures constitute prescribed minimum standards only. Group operating subsidiaries are responsible for adapting those policies and procedures to reflect local conditions where appropriate, and for implementation, oversight and monitoring within their specific businesses.

Disclaimer

This document is for information purposes only and does not constitute, nor is to be construed as, an offer to sell or the recommendation, solicitation, inducement or offer to buy, subscribe for or sell shares in Anglo American or any other securities by Anglo American or any other party. Further, it should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice and has no regard to the specific investment or other objectives, financial situation or particular needs of any recipient.

Forward-looking statements and third party information

This document includes forward-looking statements. All statements other than statements of historical facts included in this document, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations, prospects and projects (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserve and Mineral Resource positions) and sustainability performance related (including environmental, social and governance) goals, ambitions, targets, visions, milestones and aspirations, are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Anglo American's present and future business strategies and the environment in which Anglo American will operate in the future. Important factors that could cause Anglo American's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of global demand and product prices, unanticipated downturns in business relationships with customers or their purchases from Anglo American, mineral resource exploration and project development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental incidents, the effects of global pandemics and outbreaks of infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce and transport products profitably, the availability of necessary infrastructure (including transportation) services, the development, efficacy and adoption of new or competing technology, challenges in realising resource estimates or discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism, war, conflict, political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the world, evolving societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected difficulties relating to acquisitions or divestitures, competitive pressures and the actions of competitors, activities by courts, regulators and governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or maintenance of Anglo American's assets and changes in taxation or safety, health, environmental or other types of regulation in the countries where Anglo American operates, conflicts over land and resource ownership rights and such other risk factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this document. Anglo American expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules, the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the Listings Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian Stock Exchange and any other applicable regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this document should be interpreted to mean that future earnings per share of Anglo American will necessarily match or exceed its historical published earnings per share. Certain statistical and other information included in this document is sourced from third party sources (including, but not limited to, externally conducted studies and trials). As such it has not been independently verified and presents the views of those third parties, but may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any responsibility for, or liability in respect of, such information.

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LONDON (dpa-AFX) - Miners Anglo American PLC (AAL.L, AAUKY.PK) and Teck Resources Limited (TECK, TECK_A.TO, TECK_B.TO) announced that their planned merger of equals has received regulatory approval from the Government of Canada.

It was in early September that the companies announced their agreement to merge as equals to form Anglo Teck Group, in which Anglo American and Teck shareholders will own approximately 62.4% and 37.6%, respectively.

The companies expect the formation of Anglo Teck in a merger of equals will provide exceptional and enduring benefits for Canada. At completion, Anglo Teck will have its headquarters in Vancouver, and will have its primary listing on the LSE, retaining FTSE UK index inclusion, as well as listings on the JSE, TSX and NYSE.

Completion of the merger remains subject to customary conditions, including the relevant regulatory approvals in various jurisdictions globally.

The planned merger was approved by each company's shareholders at meetings held on December 9. The merger has already received competition approvals in Canada and Australia, and other reviews are progressing.

Jonathan Price, President and CEO of Teck, said, 'The Government of Canada's approval is an important step forward in the formation of Anglo Teck-a new global critical minerals champion headquartered in Canada. 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.'

Under the deal, Anglo Teck will spend at least C$4.5 billion in Canada within 5 years, including in connection with the Highland Valley Copper mine life extension. Anglo Teck will spend a total of at least C$10 billion in Canada over 15 years.

Anglo Teck's global headquarters will be in Canada, and a significant majority of its senior management will be based in Canada, including the CEO, Deputy CEO, and CFO.

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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.