Anglo American and Teck Agree Merger to Create Global Copper Giant

Anglo American (LON:AAL) and Teck Resources (NYSE:TECK) announced Tuesday that they have agreed to merge in an all-share deal to create a new mining powerhouse, Anglo Teck, with a primary listing in London and headquarters in Vancouver.

The tie-up, billed as a merger of equals, will make Anglo Teck one of the world’s largest copper producers, with more than 70% of its portfolio exposed to the metal, which is in high demand for electrification and the energy transition. The combined group will also retain businesses in premium iron ore and zinc.

Following the news, Anglo American shares jumped by more than 5%.

Under the terms, Anglo American shareholders will own approximately 62.4% of the new company, and Teck investors will own 37.6%. Ahead of completion, Anglo American intends to pay a special dividend of $4.5 billion, equivalent to roughly $4.19 per share.

The merger, subject to shareholder and regulatory approvals, is expected to close within 12 to 18 months.

The companies said the transaction will generate $800 million in annual pre-tax cost synergies by the fourth year, with 80% realised within two years.

From 2030, an additional $1.4 billion a year in average underlying EBITDA is expected through the integration of adjacent Chilean copper operations Collahuasi and Quebrada Blanca, adding about 175,000 tonnes of extra copper output.

Anglo American chief executive Duncan Wanblad said the deal would create “a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long.”

Teck chief executive Jonathan Price added that the merger would establish “a top five global copper producer with exceptional mining and processing assets.”