Shares of Canada’s critical minerals players took a hit on Monday as investors assessed the impact of new restrictions on large mergers and acquisitions in the sector.
On Thursday last week, Industry Minister Francois-Philippe Champagne approved Glencore’s (LSE:GLEN) multi-billion-dollar takeover of Teck Resources’ (NYSE:TECK) steelmaking coal division, adding that Canada would only allow similarly large deals in the future under “the most exceptional circumstances”.
Canada has a list of 31 minerals it considers critical for their use in modern technology, from wind turbines and electric grids to advanced weapons and electric vehicles.
Under the Investment Canada Act, the government can approve or reject mergers and acquisitions based on their net benefit to Canadians and the Canadian economy.
Champagne says a high bar will now be set when assessing the benefits of a deal involving critical minerals…
