Anglo, Teck shareholders give green light to merger

ANGLO American shareholders resoundingly approved the firm’s merger of equals with Canada’s Teck Resources, the UK miner said on Tuesday evening.Just over 99% of shareholders voting at general meeting held in London were in favour. A similar majority supported the change of name to Anglo-Teck, the third resolution set at the general meeting.A second resolution proposing to amend executive compensation schemes was withdrawn following discussions with shareholders, Anglo announced on December 8. Anglo CEO Duncan Wanblad, and other directors, would have received at least 62.5% of their share awards if the Canadian deal completed.“We are delighted with the clear endorsement from our shareholders,” said Duncan Wanblad, CEO of Anglo in a statement.Teck shareholders are still to vote on the merger, scheduled to take place in Vancouver at 9pm South African time. Two-thirds of B class shareholders will need to support the proposed merger. Critically, the merger has the support of Teck’s Keevil family which wields the A class voting shares. Norm Keevil backed the deal, calling it a “powerful next chapter” for the company built by his family.The $53bn transaction, amongst the mining sector’s largest, would establish a copper powerhouse. However, its scale requires approval from multiple regulators, including Canadian authorities which is to run a national security review.Under the Investment Canada Act, the national security review will examine potential effects on critical minerals and supply chains. Canada classifies both copper and germanium, which Teck produces, as critical minerals.Anglo agreed to headquarter the combined company in Vancouver. Wanblad will lead Anglo with Teck Corproation CEO Jonathan Price taking the role of deputy CEO. The board would be drawn 50-50 from the two companies.The logic for the deal is the fact the combined entity will have 70% of its production in copper, a metal tipped to run into major supply deficits in the years ahead. Anglo American produced 770,000 tons of the metal last year while Teck is set to produce up to 525,000 tons this year.Both have plans to expand copper production, while they already own parts of a giant copper complex in Chile — the Collahuasi and Quebrada Blanca copper mines — which will be combined following the deal.The companies estimated that the merger would deliver pre-tax annual cost savings of $800m. The post Anglo shareholders give green light to Teck merger appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com