Anglo American announced it plans to acquire Teck Resources, a deal that would create one of the world’s largest copper producers.CHRIS HELGREN/Reuters
Billions of dollars in Canadian capital gains taxes from the proposed sale of Teck Resources Ltd. TECK-B-T to Anglo American PLC NGLOY could be deferred for up to 15 years because of how the deal is being structured.
London-based Anglo has announced plans to acquire Vancouver-based Teck in an entirely stock-based transaction that would create one of the world’s largest copper producers, with a market value of roughly US$50-billion.
Instead of receiving shares of the British parent company, however, Canadian shareholders of Teck can opt to receive shares in a new Canadian subsidiary that will trade on the Toronto Stock Exchange.
The option has a clear tax benefit. Even though the combined company – set to be called Anglo Teck – will be headquartered in…
