Anglo American Teck to merge in $53bn deal creating copper giant

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Photo:Reuters

In one of the biggest deals in mining history, Anglo American, a major mining company based in London, and Teck Resources of Canada have agreed to merge. This huge $53 billion deal will create a new company called Anglo Teck, which will become the fifth-largest copper producer in the world.

The merger, announced on Tuesday, is a game-changing moment for the global mining industry. It comes at a time when copper is becoming more valuable due to its essential role in electric vehicles, renewable energy projects, construction, and artificial intelligence technologies.

Ownership and Structure

* Under this merger, Anglo American’s shareholders will hold 62.4% of the new company.

* Teck’s shareholders will own 37.6%.

* The company will be headquartered in Canada but will maintain its primary stock listing in London.

The merger is an all-share transaction with no extra premium, but Anglo shareholders will receive a $4.5 billion special dividend.

Why Copper Matters

Copper is a key metal for the future. It is used in electric car batteries, power grids, data centers, and renewable energy systems. With governments around the world pushing for green energy, copper demand is expected to grow sharply.

That’s why many big mining firms have been trying to secure copper mines and expand production. However, most takeover bids in recent years have failed.

Rival Bids and Takeover History

This merger follows a history of rejected takeover offers:

* In 2024, BHP tried to buy Anglo American for $53 billion, but Anglo rejected it.

* In 2023, Glencore offered $22.5 billion for Teck, but Teck turned it down. Later, Teck sold its coal business to Glencore for $6.9 billion instead.

Because this merger does not include a premium price, some experts believe other companies like Glencore or BHP might still step in with rival offers. However, the agreement has a $330 million break fee, which would apply if either company walks away.

Leadership and Management

* Duncan Wanblad, Anglo American’s current CEO, will become CEO of the new company.

* Jonathan Price, Teck’s CEO, will serve as deputy CEO.

* The board of Anglo Teck will be split evenly between directors from both companies.

Wanblad described the merger as a “true merger of equals”, stressing that both companies bring unique strengths.

Cost Savings and Efficiency

The merger is expected to create annual cost savings of about $800 million by the fourth year after completion. The companies believe that combining operations will make them more efficient, stronger financially, and able to reinvest profits into new projects.

One major advantage is that both companies operate copper mines in Chile that are located near each other — Anglo runs Collahuasi, while Teck owns Quebrada Blanca. Working together will make these operations cheaper and more productive.

Challenges and Approvals

The deal still needs regulatory approvals from different countries. Teck’s CEO Jonathan Price estimated the process could take 12 to 18 months.

A major boost for approval is that the new company will remain headquartered in Canada, which protects Teck’s Canadian legacy. This is important because Canadian authorities had earlier shown resistance to Glencore’s bid.

Teck’s controlling shareholders, the Keevil family, have already given their irrevocable support to the merger, which strengthens the chances of approval.

Market Reaction

Some analysts believe this merger is a smart defensive move by both companies, protecting them from unwanted takeovers. Others warn that the lack of a premium could invite interlopers like Glencore or BHP to make rival offers.

Still, industry insiders say the deal makes sense. Shareholders and investors see it as a way to combine resources, reduce risks, and focus on the future demand for copper, iron ore, and zinc.

The Anglo American–Teck merger is a historic step in the mining world. It creates a copper powerhouse positioned to benefit from the global push towards green technology and electrification.

If regulators approve it, Anglo Teck will stand as a global giant with $53 billion in market value, strong mining assets across continents, and the potential to dominate in the fast-growing copper sector.

For investors, this is more than just another deal — it is a clear sign that copper is the metal of the future, and mining companies are racing to secure their place in this transformation.

Anglo American, Teck Resources, copper demand, mining merger