Mining giants Teck and Anglo merge to form Anglo Teck

Key Takeaways:

• Teck and Anglo American will merge to form Anglo Teck, headquartered in Vancouver, which will rank among the world’s top five copper producers with more than 70% copper exposure.
• The merger is expected to generate US$800 million in annual synergies within four years and an additional US$1.4 billion in annual EBITDA from 2030–2049 through expanded Chilean copper production.
• Anglo Teck has committed $4.5 billion in Canadian investments over five years, including life-extension and critical-minerals projects, while maintaining jobs and honouring Indigenous agreements.

The Whole Story:

Teck Resources Ltd. and Anglo American PLC have agreed to merge in an all-share, at-market transaction that will create “Anglo Teck,” a Canada-headquartered mining company the partners say will be a top-five global copper producer with more than 70% exposure to the metal.

Under the arrangement, each Teck class A common share and class B subordinate voting share will be exchanged for 1.3301 Anglo American ordinary shares. Eligible Canadian Teck shareholders may elect exchangeable shares in a Canadian subsidiary with the same economic and voting rights. On closing, Anglo American shareholders are expected to own about 62.4% of Anglo Teck and Teck shareholders about 37.6 per cent.

Anglo American’s board intends to declare a special dividend of about US$4.5 billion (approximately US$4.19 per share) to its shareholders ahead of completion, subject to customary conditions.

The companies said the combined group will be headquartered in Vancouver with corporate offices in London and Johannesburg. Duncan Wanblad will serve as chief executive, Teck’s Jonathan Price as deputy CEO, and John Heasley as chief financial officer. Sheila Murray is to chair the board. Each company will nominate half of the non-executive directors.

Anglo Teck is expected to list in London as its primary market and maintain listings on the Johannesburg and Toronto stock exchanges. A New York presence is planned via American depositary receipts, all subject to exchange approvals.

The partners said the merger is backed unanimously by both boards and is expected to close in 12 to 18 months, pending shareholder, court and regulatory approvals, including under the Investment Canada Act and competition reviews in several jurisdictions.

The companies forecast pre-tax recurring annual synergies of about US$800 million by the end of year four after closing, with roughly 80 per cent realized by the end of year two. They also outlined additional average pre-tax annual underlying EBITDA uplifts of about US$1.4 billion from 2030 to 2049 by optimizing two adjacent Chilean copper operations, Collahuasi and Quebrada Blanca, working with joint-venture partners. That integration is expected to add about 175,000 tonnes of potential annual copper production over that period.

Anglo Teck’s copper portfolio will include Collahuasi and Quebrada Blanca in Chile, Quellaveco and Antamina in Peru, Los Bronces in Chile and Highland Valley Copper in B.C. The group will also retain premium iron ore operations in South Africa and Brazil and the Red Dog zinc mine in Alaska, along with Teck’s Trail metallurgical complex in B.C.

As part of commitments offered under the Investment Canada Act, the companies said Anglo Teck will keep its global headquarters in Canada, maintain Canadian employment levels with no net reduction tied to the merger, and invest at least C$4.5 billion over five years. Planned spending includes the Highland Valley Copper life-extension project, upgrades at Trail — including potential increases in germanium and other critical-minerals output — and advancing copper projects such as Galore Creek and Schaft Creek in northwestern B.C. The group also plans at least C$300 million for Canadian critical-minerals exploration and technology and will honour existing agreements with Indigenous governments, communities and unions.

Anglo American said it remains committed to its portfolio simplification, including separating De Beers and completing planned divestitures of steelmaking coal and nickel.

Teck separately noted it is conducting a comprehensive operations review to conclude by October 2025 and continues to advance a “QB Action Plan” at Quebrada Blanca to support a return to full production.