Anglo Teck merger aims to establish top-five copper producer and minerals leader
Key topics:
$4.5 bn special dividend ahead of merger completion
70% copper exposure positions Anglo Teck as global leader
Dual HQ in Canada & UK, with lasting SA commitment
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BizNews Reporter
Anglo American plc has issued a Circular to Shareholders dated 10 November 2025, outlining the recommended Proposals to implement a merger of equals with Teck Resources Limited ("Teck"). The proposed combination aims to create "Anglo Teck," which is positioned to become a "global critical minerals champion" and a top-five global copper producer based on 2027 forecasted production.
The resulting entity, Anglo Teck, will leverage the combined strengths of both groups, focusing on portfolio quality, resilience, and strategic positioning. The merged company is expected to offer investors more than 70% exposure to copper. Based on 2024 figures, the combined entity would achieve annual copper production of approximately 1.2 million tonnes (Mt) and premium iron ore production of 61 Mt. Following the merger, Anglo Teck will also be one of the world's largest producers of mined zinc.
The financial structure is based on an "at market merger of equals". Anglo American Shareholders are expected to own approximately 62.4% of Anglo Teck immediately following completion, while Teck Shareholders will own approximately 37.6%. The Merger plan includes Anglo American's intention to declare a special dividend of US$4.5 billion (expected to be about US$4.19 per Share) to Shareholders ahead of completion.
The Board anticipates significant value creation through synergies. Annual pre-tax recurring synergies are expected to reach approximately US$800 million by the end of the fourth year following the merger, primarily driven by economies of scale, operational efficiencies, and commercial excellence. Additionally, long-term operational synergies, mainly from integrating the adjacent Collahuasi and Quebrada Blanca operations in Chile, are expected to deliver US$1.4 billion (on a 100% basis) of underlying EBITDA revenue synergies annually from 2030–2049.
Anglo Teck's global headquarters will be located in Vancouver, British Columbia, Canada, while retaining corporate offices in London and Johannesburg. Leadership will include Duncan Wanblad as CEO, Jonathan Price as Deputy CEO, and John Heasley as CFO, with a significant majority of the senior executive team based in Canada. Anglo Teck will maintain its UK incorporation and tax status and intends to be listed on the LSE, JSE, TSX, and NYSE (via American Depositary Receipts).
Crucially for South Africa, Anglo Teck confirms an "enduring commitment" to the country, including compliance with empowerment and mining license requirements and providing meaningful representation on the board and executive team. It also plans to contribute financially to South Africa’s Junior Mining Exploration Fund. In Canada, Anglo Teck has committed to investments of at least CAD$4.5 billion over five years, including up to CAD$2.4 billion for the Highland Valley Copper Mine Life Extension Project.
The transaction requires shareholder approval, sought at a General Meeting (GM) scheduled for 17:30 (UK time) on Tuesday, 9 December 2025. Resolutions include authorising the allotment of new shares for the Merger, amending Long-Term Incentive Plan Awards for Executive Directors, and the legal name change to "Anglo Teck plc". The Board unanimously recommends voting in favour of the Resolutions.