Anglo American and Teck Resources have announced a definitive agreement to merge in an all-share transaction, forming Anglo Teck plc—a new global mining powerhouse focused on critical minerals. Valued at $1.2 billion pre-money, this merger will position Anglo Teck as a top-five global copper producer, with over 70% copper exposure and a diversified portfolio including premium iron ore and zinc.
The combined company will be headquartered in Vancouver, with listings planned on the LSE, TSX, JSE, and NYSE. Anglo American shareholders will own approximately 62.4% of the new entity, while Teck shareholders will hold 37.6%. A $4.5 billion special dividend will be paid to Anglo American shareholders ahead of completion.
Anglo Teck is expected to deliver $800 million in annual pre-tax synergies and unlock an additional $1.4 billion in EBITDA from operational integration of adjacent copper assets in Chile. The merger is backed unanimously by both boards and is expected to close within 12–18 months, subject to regulatory and shareholder approvals.
Anglo Teck will be based in Canada but will have a primary stock listing in London. The two companies have a combined market capitalization exceeding $53 billion.
Advisors: Anglo American is being advised by Centerview Partners, Morgan Stanley, Goldman Sachs, and RBC Capital Markets as financial advisers. Latham & Watkins, Torys, and Webber Wentzel are acting as legal advisers to Anglo American.
KEY QUOTES:
“We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long. Having made such significant progress with Anglo American’s portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth. We have a unique opportunity to bring together two highly regarded mining companies whose portfolios and capabilities are deeply complementary, while also sharing a common set of values. We are all committed to preserving and building on the proud heritage of both companies, both in Canada, as Anglo Teck’s natural headquarters, and in South Africa where our commitment to investment and national priorities endure. Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.”
Duncan Wanblad, Chief Executive Officer of Anglo American
“This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada – a top five global copper producer7 with exceptional mining and processing assets located across Canada, the United States, Latin America, and Southern Africa. It is a natural progression of our strategy and portfolio simplification, which created a platform to enable exactly this sort of transformative transaction. Bringing together our world-class copper assets, premium iron ore and zinc operations and an outstanding pipeline of high-quality growth projects provides enormous resiliency and optionality. This transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and all stakeholders.”
Jonathan Price, Chief Executive Officer of Teck
