Global mining group Anglo American and Canadian miner Teck Resources have agreed to merge in a deal that will create one of the world’s largest copper producers with a combined market value of over $53bn.
The combined group, to be named Anglo Teck, will rank among the top five copper players globally, with copper making up more than 70% of its portfolio. It will also retain positions in iron ore and zinc.
Shareholders of Anglo American will own about 62.4% of the new company, while Teck investors will hold 37.6%. Before the deal closes, Anglo American plans to pay its shareholders a special dividend of $4.5bn, equal to about $4.19 per share.
The boards of both companies have unanimously approved the transaction, which is expected to close within 12 to 18 months, subject to shareholder and regulatory approvals.
The new company’s copper output is forecast at 1.2m tonnes annually, rising to about 1.35m tonnes by 2027. Six producing copper assets will form the backbone of the portfolio, alongside future growth projects in the Americas and southern Africa.The deal is projected to deliver $800m in annual pre-tax cost savings by year four. Another $1.4bn in yearly EBITDA gains are expected from 2030 through 2049 by linking operations at the neighbouring Collahuasi and Quebrada Blanca mines in Chile. That could add around 175,000 tonnes of extra copper production each year.
Anglo Teck will base its headquarters in Vancouver, with corporate offices in London and Johannesburg. Anglo American boss Duncan Wanblad will take over as CEO, while Teck’s Jonathan Price becomes deputy CEO. John Heasley is named chief of finance, with Sheila Murray as chair.
Both companies said the merger is a natural fit. “We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion,” said Wanblad. Teck’s Price added the deal “creates a top five global copper producer with exceptional mining and processing assets.”
Anglo Teck has pledged to invest about C$4.5bn over five years in Canada, supporting mine extensions, copper processing at Trail, and new projects in British Columbia. It also plans to maintain jobs and honour agreements with Indigenous governments and communities.
With listings planned in London, Johannesburg, Toronto and New York, Anglo Teck will have access to the world’s key mining finance hubs. The transaction comes after both companies streamlined their portfolios in recent years, with Anglo American spinning off or selling coal and nickel operations, and Teck simplifying its business. Both firms have been in the takeover spotlight in recent years, with Glencore making a run at Teck and BHP showing interest in Anglo American. If approvals proceed as planned, Anglo Teck will enter the market as one of the sector’s most copper-focused groups, positioned to ride long-term demand for the red metal.
