Anglo American has reached an agreement to merge with Canada’s Teck Resources in a $53bn (£39bn) deal that will form one of the world’s largest copper producers, following both companies’ successful defence against recent takeover attempts.
The combined group, to be called Anglo Teck, will be headquartered in Vancouver, Canada, reflecting Canadian government efforts to safeguard its critical minerals sector. While the new company will keep Anglo’s primary listing on the London Stock Exchange, it will also be listed in Johannesburg, Vancouver, and New York. Anglo has held its London listing since 1999.
The merger is expected to deliver $800m in annual cost savings within four years, with around $60m anticipated from board and head office “rationalisation,” raising the likelihood of job losses at Anglo’s London headquarters. However, the companies pledged that Canada would see “no net reduction in the number of employees,” in line with government legislation.
Under the terms, Anglo shareholders will own 62.4% of the new entity, while Teck investors will control 37.6%. Although the deal represents a 17% premium to Teck’s share price, the companies presented it as a zero-premium merger because Anglo plans to issue a $4.5bn special dividend to its shareholders before completion.
Anglo’s chief executive Duncan Wanblad, who will lead the new group from Vancouver, described the transaction as a “true merger of equals,” stressing its significance for Canada and its role in supporting critical mineral strategies globally. Teck CEO Jonathan Price will become deputy chief executive, with copper expected to contribute more than 70% of earnings by 2027.
The merger follows Anglo’s defence against a £39bn takeover bid by BHP and Teck’s rejection of Glencore’s £16.6bn offer in 2023. Analysts say the deal marks a dramatic turnaround for Anglo, which has repositioned itself as an industry consolidator.
The new company will bring together six major copper assets in Chile and other “world-class jurisdictions,” a move that both executives say will position the business at the heart of the global transition to renewable energy and electric vehicles.
If approved, the deal will be one of the largest in mining history, second only to the $90bn Glencore-Xstrata merger in 2013. Shares in both Anglo and Teck surged more than 10% after the announcement, signalling strong investor confidence.