A Global Copper Giant Rises as Teck and Anglo American Unite

Teck Resources shares surged following the announcement of a merger with Anglo American, creating a global critical minerals champion and the fifth-largest copper producer. The merger, structured as a "merger of equals," forms the Anglo Teck group, which is expected to offer more than 70% exposure to copper and provide significant growth opportunities. The combined entity will have a global headquarters in Vancouver, with corporate offices in London and Johannesburg, and will be listed on multiple exchanges, including the London Stock Exchange, Johannesburg Stock Exchange, Toronto Stock Exchange, and New York Stock Exchange. Anglo Teck's leadership team will include key executives from both companies, with Duncan Wanblad as CEO, Jonathan Price as Deputy CEO, and John Heasley as CFO [1].

The merger is expected to generate substantial financial synergies, including US$800 million in pre-tax recurring annual synergies by the end of the fourth year after completion and an additional US$1.4 billion in underlying EBITDA revenue synergies between the adjacent Collahuasi and Quebrada Blanca operations from 2030 to 2049. These synergies are anticipated to result in a potential increase of around 175,000 tonnes of annual copper production [1]. Anglo Teck will also benefit from a stronger balance sheet and a diversified asset base, including premium iron ore and zinc operations. The merger is expected to enhance Anglo Teck’s global capital market footprint, providing broader access to financing and supporting its growth ambitions [1].

Anglo American shareholders will own approximately 62.4% of Anglo Teck, while Teck shareholders will hold 37.6% immediately after the merger’s completion. The transaction includes a special dividend of US$4.5 billion (approximately US$4.19 per share) paid to Anglo American shareholders ahead of the merger, ensuring a more balanced participation in the go-forward business. The merger is subject to regulatory and shareholder approvals and is expected to complete within 12 to 18 months [1]. Both companies’ boards have unanimously supported and recommended the merger, citing the strategic benefits of combining their complementary portfolios and capabilities [1].

The formation of Anglo Teck is expected to have significant economic benefits for Canada, with the company committing to invest at least CAD$4.5 billion in the country over five years. These investments will include projects such as the Highland Valley Copper Mine Life Extension, improvements in critical minerals processing at Trail, and the development of new copper mines in British Columbia. Anglo Teck will maintain its employment levels in Canada and create new economic activity and jobs through these investments. The company will also explore opportunities to expand copper processing capacity and support the development of new critical minerals processing facilities [1].

Anglo Teck will continue to uphold its commitments to sustainability and responsible resource development, building on the track records of both Anglo American and Teck. The company is recognized as a leader in environmental and social governance, with a focus on stakeholder trust and long-term value creation. Anglo Teck’s operations will continue to comply with relevant empowerment and mining license requirements in countries such as South Africa. The company will also support the Canadian junior mining sector by exploring the application of advanced geoscience and data approaches in mineral exploration and partnering with local stakeholders [1].

The merger of Teck and Anglo American is expected to create a stronger, more resilient company with enhanced financial flexibility and growth potential. The combined entity will benefit from a larger and more diversified asset base, as well as operational efficiencies and cost synergies. Anglo Teck’s strategic focus on critical minerals aligns with global demand trends and positions the company to deliver sustainable, long-term value for shareholders and stakeholders. The merger represents a transformative step for both companies, combining their strengths to address the challenges and opportunities in the global mining industry [1].

Source:

[1] Teck and Anglo American to combine through merger of equals to form a global critical minerals champion (https://www.teck.com/news/news-releases/2025/teck-and-anglo-american-to-combine-through-merger-of-equals-to-form-a-global-critical-minerals-champion)

[2] Anglo American and Teck to combine through a merger of equals to form a global critical minerals champion (https://www.angloamerican.com/media/press-releases/2025/09-09-2025)