Teck Resources In Spotlight After Getting ISS, Glass Lewis Backing For Anglo American Merger

• The shareholders of Teck and Anglo American are scheduled to vote on the merger on Dec. 9.
• “Shareholders are expected to benefit from increased liquidity and a stronger financial position for the combined company.” - ISS.
• Glass Lewis noted that the merger positions Anglo Teck as a financially stronger and more resilient producer with “meaningful upside from operational integration” and future development opportunities.

Teck Resources (TECK) stock was in the spotlight on Wednesday after its proposed merger with Anglo American received the backing of proxy advisory firms Institutional Shareholder Services, Inc. and Glass Lewis & Co.

Teck and Anglo American agreed to merge in September in one of the biggest mining deals in history. The combined firm is expected to produce about 1.2 million tonnes of copper annually, amid a surge in demand for the metal, used in everything from wires to electric vehicles. The shareholders of Teck and Anglo American are scheduled to vote on the merger on Dec. 9.

What Did Glass Lewis, ISS Say?

“The universe of potential buyers is limited, the board actively explored alternative transaction structures in order to maximize shareholder value, shareholders are expected to benefit from increased liquidity and a stronger financial position for the combined company,” ISS said.

The Canadian miner is involved in four mining projects, including the giant Quebrada Blanca project in Chile, which is located close to Anglo American’s Collahuasi mine. The two miners expect recurring annual benefits of $800 million following the deal’s close.

“If successfully executed, the merger positions Anglo Teck as a financially stronger and more resilient producer with meaningful upside from operational integration and future development opportunities,” Glass Lewis reportedly stated in a note from last week.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Teck was in the ‘bullish’ territory, while retail chatter was ‘extremely high.’

Canada Mulls National Security Review

According to a Reuters News report, Canadian Industry Minister Melanie Joly said on Wednesday that Canada will submit the multibillion-dollar merger between Anglo American and Teck Resources to a national security review. She added that Ottawa would arrive at a final decision in the coming months.

"The national security review for any transaction is always part of the process... so we're following the process," she reportedly told reporters. While both the firm’s executives have pledged to keep the combined headquarters in Vancouver and maintain a dual listing, Ottawa has reportedly asked for more, such as investment in the country and job security.

Teck Resources shares have grown nearly 3.5% this year.

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