Crystal Charles
London-listed Anglo American and Canada’s Teck Resources on Tuesday announced a $53bn all-share merger that will create the world’s fifth-largest copper producer, marking the second-biggest transaction in mining history.
The combined company, to be called Anglo Teck, will be headquartered in Canada with a primary stock market listing in London. Anglo shareholders will own 62.4 percent of the new entity, while Teck investors will hold 37.6 percent.
“This is a true merger of equals,” said Anglo chief executive Duncan Wanblad, who will lead the new company. Teck CEO Jonathan Price will serve as deputy. The two firms’ boards will be evenly split between current directors.
The tie-up comes amid soaring demand for copper, a key component in electric vehicles, renewable energy and artificial intelligence infrastructure. The deal is expected to generate annual cost savings of $800m within four years, while synergies at adjacent Chilean mines — Teck’s Quebrada Blanca and Anglo’s Collahuasi — are expected to deliver further gains.
The all-share deal carries no takeover premium, though Anglo shareholders will receive a $4.5bn special dividend. Analysts warned that the lack of premium could invite rival offers from Glencore or BHP. A $330m break fee applies should the deal collapse.
Price said regulatory approvals could take 12 to 18 months. He noted that the Keevil family, which controls Teck’s majority A-class shares, has given its backing. Keeping headquarters in Canada, he added, preserves Teck’s “Canadian legacy” and could smooth approval from Ottawa, which opposed Glencore’s earlier bid.
Industry observers hailed the merger as a natural fit. “This brings complementary cultures together and strengthens the sector,” said Adam Matthews of the Church of England Pensions Board, a shareholder in Anglo.
The largest mining deal to date remains Glencore’s $90bn merger with Xstrata in 2013.