Anglo-Teck Vancouver headquarters is a ‘perpetual’ commitment

Anglo American Plc and Teck Resources Ltd.’s plan to headquarter their merged company in Canada is “a perpetual commitment,” according to Teck chief executive officer Jonathan Price.

“The commitment that we are making to Canada and the presence of the global headquarters of Anglo Tech in Canada is an enduring commitment,” Price told BNN Bloomberg Television on Wednesday.

An agreement by UK-based Anglo to acquire Canada’s Teck in one of the biggest mining deals in over a decade will need regulatory approval in countries including Canada. Last year, Canada said it would only approve foreign takeovers of large mining companies involved in critical minerals production “in the most exceptional of circumstances.”

Establishing the global headquarters in Vancouver, with the presence of most senior executives, “is a great thing for the country,” Price said.

Asked if a string of setbacks at Teck’s copper mine in Chile was a driver for the transaction, Price said “we’re fully confident that we’ll overcome those challenges.”

“The reason for doing this transaction now is that these opportunities don’t come along very often,” he said. “When you see them, you have to seize them.”

If approved by regulators, the acquisition is expected to close in 12 to 18 months.

The two companies are speaking to investors all over the world, explaining the “incredible upside” and gathering feedback, Price said. While those conversations are very preliminary, “there is real recognition here for the industrial logic of this and the quality of the business we are creating.”

(By James Attwood)