Teck Resources (TECK.US) and Anglo American Resources have merged and received approval from the Canadian government to create one of the world's largest copper producers.

Teck Resources (TECK.US) and Anglo American Resources Group announced that their merger plan has received key approval from the Canadian government, creating one of the largest copper producers in the world. As of the time of writing, the stock rose 2.3% in pre-market trading on Tuesday. The two companies stated that the newly formed "AngloMattel, Inc." company will bring "extraordinary and lasting benefits to Canada," with its global headquarters located in Vancouver, British Columbia, where Teck Resources is currently based. The company announced that it has further clarified the commitment plan proposed under the Canadian Investment Act, including: AngloMattel, Inc. agrees to invest at least CAD 4.5 billion (approximately USD 3.27 billion) in Canada within five years for the life-extension project of Highland Valley Copper Mine, upgrading the key mineral processing capabilities of the Trail Smelter Complex, and advancing the development of the Galore Creek and Schaft Creek copper mine projects in British Columbia. Based on the commitments, AngloMattel, Inc. plans to invest at least CAD 10 billion within 15 years. Jonathan Price, President and CEO of Teck Resources, said: "This merger will integrate two world-class companies to create a new entity with significant scale and strength, bringing billions of investments to Canada and the global economy, promoting new economic activities and job growth." Despite reservations from Canadian Industry Minister Melanie Joly, the deal was approved. In a statement issued on Monday, Joly pointed out that the transaction benefits the Canadian economy and emphasized the two companies' commitment to retaining 4,000 employees in Canada, ensuring that Canadian members make up more than half of the new company's board of directors for at least seven years, and earmarking hundreds of millions of dollars for indigenous communities in British Columbia.