Anglo American, Teck Resources Mega-Deal Will Create “Compelling, Large-Scale Copper Business” 

Anglo American and Teck Resources have agreed to merge in an all-share transaction to create “Anglo Teck,” a Canada-based miner set to become one of the world’s top five copper producers. The deal marks the largest mining M&A transaction in more than a decade and comes amid a global scramble for rare earth minerals, driven by data center buildouts, power grid upgrades, electric vehicles, and other electrification trends. 

Under the proposed mega-merger, Anglo shareholders will hold 62.4% of Anglo Teck, while Teck investors will own 37.6%. The combined company is expected to produce about 1.2 million metric tons of copper annually, driven by Anglo’s 770,000-ton output and Teck’s 545,000 tons.

The deal comes as copper demand rises on the back of global electrification trends, including data center buildouts, the proliferation of EVs, and widespread power grid upgrades to handle the explosion in demand. 

At a press conference, Anglo CEO Duncan Wanblad told reporters: ”We will have a stronger, more resilient financial platform with scale advantages, including greater flexibility to reallocate capital dynamically to the highest returning opportunities.”

Additional color on the Anglo Teck mega deal:

• Copper Exposure: The new company is expected to derive 70% or more of its revenues from copper, with an annual output forecast to rise from 1.2 million tons to 1.35 million tons by 2027.

• Synergies: Management projects $800M in recurring annual pre-tax savings by year 4, plus $1.4B in EBITDA uplift from integrating the adjacent Collahuasi and Quebrada Blanca mines in Chile, resulting in 175kt of additional copper production annually from 2030 to 2049.

• Portfolio: Anglo Teck combines six world-class copper assets with Anglo’s premium iron ore business in South Africa and Brazil, Teck’s zinc operations in Canada and Alaska, and crop nutrient projects in the UK.

• Listings & Governance: Anglo Teck will be headquartered in Vancouver, with a primary listing on the LSE and secondary listings on the JSE, TSX, and NYSE. Duncan Wanblad (Anglo) will serve as CEO, Teck’s Jonathan Price as deputy CEO, and Sheila Murray as chair. The board will be split evenly.

• Timeline: The boards unanimously support the deal, with completion targeted in 12–18 months, subject to shareholder and regulatory approvals.

Berenberg analysts Richard Hatch and William Dalby told clients earlier, ”The combination will result in a compelling, large-scale copper business, we think, with zinc and iron ore exposure, too.” 

Anglo American’s London shares jumped the most in 17 months, up nearly 10% by late morning in Europe. U.S.-listed Teck shares were up 14% in premarket trading. 

Berenberg analysts noted that Glencore could emerge as a rival bidder but said cultural differences would likely pose a major hurdle. They added that BHP may also show interest, given the scale Teck could bring to its copper business.

“A bidding war could ensue,” the Jefferies analysts told clients.