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Anglo American, Teck Resources shareholders approve mining merger

Anglo American shareholders and Teck Resources shareholders approved a merger announced earlier on Tuesday, according to the companies. This paved the way for the creation of a new copper giant, with regulatory approvals remaining the last hurdle.

Anglo released a statement saying that more than 99.17% votes were cast in favor by Anglo's London-listed shareholders. For the motion to be passed, a simple majority was needed.

Teck shareholders have also passed their approval threshold of two thirds. The new company 'Anglo-Teck' will have its headquarters in Vancouver and its primary listing in London. Teck and Anglo-American announced in September their plans for a $53 Billion all-stock merger with no premium. This would create the fifth largest copper producer in the world. Both companies have been undergoing significant restructuring over the past few years, largely due to previous takeover attempts.

Copper, an important metal used in the construction and power industries, will benefit from a'surging demand' driven by artificial intelligence and electric vehicles. A wave of takeovers has prompted miners to rush into developing new projects, but no major deal is yet completed. The risk of an outsider was a major obstacle to the deal. BHP, the world's biggest listed miner?made a new approach for Anglo, in November. Meanwhile, activist investors were pushing Rio Tinto towards Teck.

The combined entity will?produce more than 1.2 millions metric tons copper per year. By the fourth year following the completion of the tie-up, it is expected that the combined entity will generate annual savings and gains in efficiency worth $800 million.

Teck shares fell 0.8% after the shareholder vote. Anglo's shares in London closed 0.5% lower.

Both companies will now need to obtain regulatory approvals in Canada, China and key other jurisdictions. The review will be based on national interest and competition, especially given that copper is a critical mineral. (Reporting from London by Clara Denina and Unnamalai L, Bengaluru by Maju Sam and Matthew Lewis).

(source: Reuters)