London-listed miner Anglo American and Canadian copper producer Teck Resources have announced a definitive merger, poised to create a formidable copper-mining entity valued at over $50 billion (€42.6 billion). This strategic consolidation marks the largest deal in the global mining sector in over a decade, signaling a significant industry pivot towards securing critical resources for the accelerating clean energy transition.
Under the agreed terms, Teck shareholders will receive 1.3301 new Anglo American shares for each Teck share, along with a special dividend of $4.5 billion (€3.8 billion). This zero-premium transaction will result in Anglo American investors holding 62.4% of the combined entity, with Teck shareholders owning the remaining 37.6%. Following the announcement, Anglo American’s shares saw an initial surge of over 9%, reflecting a positive market reception to the proposed integration.
The strategic rationale for the merger is largely underpinned by the surging global demand for copper, a critical material for electrification and renewable energy infrastructure. Russ Mould, investment director at AJ Bell, highlighted that “Combining with Teck will give Anglo greater scale in copper, a commodity in strong demand thanks to its key role in the transition to clean energy.” However, the long-term success of this integration will be scrutinized against Anglo American’s varied history with major acquisitions and its recent challenges, including approximately $2.9 billion (€2.5 billion) in impairments on its De Beers diamond business due to increased supply from lab-grown stones.
This merger also underscores Anglo American’s strategic positioning, coming after it successfully fended off a significant takeover bid from Australia’s BHP last year. BHP’s interest, which ultimately collapsed over disagreements regarding the divestment of Anglo’s South African assets, reinforced the perceived value of Anglo’s portfolio. Similarly, Teck Resources has been a target in its own right, having recently sold its steelmaking coal business to Glencore for approximately $6.9 billion (€5.9 billion) following Glencore’s earlier unsuccessful attempt to acquire the entire firm.
Both companies’ boards have unanimously recommended the merger, though they retain the flexibility to consider “unsolicited acquisition proposals” and terminate the current agreement for a “superior” offer, subject to a $330 million (€280.9 million) break fee. Regulatory approvals are anticipated to take between 12 and 18 months, with significant backing from Canada’s influential Keevil family, which owns a majority of Teck’s A-class shares. The new company, provisionally named Anglo Teck, will be led by Anglo’s current CEO, Duncan Wanblad, as Chief Executive, with Teck’s Jonathan Price assuming the role of Deputy CEO.
The combined entity will establish its headquarters in Vancouver, while maintaining a primary stock listing in London, complemented by secondary listings in Johannesburg, Toronto, and New York. The integration is projected to yield substantial annual cost savings and efficiency gains, estimated at $800 million (€681 million) by the fourth year post-completion, signifying a robust commitment to operational synergy and enhanced shareholder value.
Emily Carter has over eight years of experience covering global business trends. She specializes in technology startups, market innovations, and corporate strategy, turning complex developments into clear, actionable stories for our readers.