Miningweb: Anglo American to acquire Teck, creating more than $50bn mining giant

Key topics:Anglo American to acquire Teck Resources in $50bn mining dealCombined company named Anglo Teck, HQ in Vancouver, London listingDeal boosts copper production amid global energy transition push.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Thomas Biesheuvel, Crystal Tse and Dinesh Nair.Anglo American Plc has agreed to acquire Canada’s Teck Resources Ltd., creating a more than $50 billion company in one of the biggest mining deals in more than a decade.Anglo’s shareholders will own 62.4% of the combined company, while Teck holders will control 37.6%, in a deal that would represent a 17% premium to Teck’s closing share price on Monday, according to Bloomberg calculations. But Anglo will also pay its investors a $4.5 billion special dividend ahead of the combination, and the miners presented it to shareholders as a zero-premium transaction on Tuesday.The combination, which confirmed a Bloomberg News report that a deal was imminent, marks the culmination of several years of revived dealmaking among the largest players. If approved by regulators, the acquisition is expected to be completed in 12 to 18 months.Teck, which had fallen roughly 20% in Toronto trading over the past year through Monday, has a market value of about $17.2 billion. It jumped more than 20% in after hours trading after Bloomberg reported the talks. Anglo surged as much as 8.5% in London trading on Tuesday, boosting its market value to 28.6 billion pounds ($39.5 billion)..Read more:.Miningweb: Anglo and Teck to merge into copper giant - definitive defence against BHP, Glencore.The boards of both companies unanimously recommend the deal. Anglo’s Chief Executive Officer Duncan Wanblad will head the new company, while Teck’s CEO Jonathan Price will be deputy. The combined company will be called Anglo Teck. It will be headquartered in Vancouver, while its primary listing will be in London.Both companies have been pursued by bigger miners in recent years: Anglo fought off a $49 billion approach from BHP Group last year, while Glencore Plc unsuccessfully tried to buy Teck in 2023. Those failed bids kicked off a dealmaking frenzy, with executives across the industry spending much of the past two years running the numbers on their rivals to assess potential transactions. The increased activity has largely been driven by the desire to expand production of copper — a metal essential to the global energy transition — as well as a fear of missing out after BHP’s bid for Anglo sent shock waves through the sector. A Teck-Anglo combination has long been discussed behind the scenes. Both companies have been seeking to simplify their businesses — Teck sold a majority stake in its coal business to Glencore, while Anglo has exited platinum mining and is in the process of trying to sell its own coal mines and offload its De Beers diamond unit..The announcement of the deal could yet kick off fresh bids for Teck or Anglo. In the statement, the agreement includes provisions that would allow either company to consider unsolicited proposals and for the deal to be terminated in the event of a superior proposal, according to the statement.Teck’s flagship mine is the Quebrada Blanca 2 copper project in Chile. Anglo owns a stake in the neighbouring Collahuasi mine, which could offer opportunities to increase production and profits by combining the two operations.For Anglo, successfully buying Teck could help make it less vulnerable to another potential takeover bid itself, though its offer could draw out interlopersThe news could also spur other rivals into action. Teck, which is controlled by the founding Keevil family, has been a focus for several of the industry’s biggest players because of its attractive copper assets, Bloomberg reported previously. The family controls Teck through “supervoting” Class A shares, while its largest shareholder is China Investment Corp. The Keevil family is supporting the deal.The deal will need the approval of the Canadian government, at a time when copper and other critical minerals have become viewed as increasingly strategic by governments around the world. Canada said last year that it would only approve foreign takeovers of large Canadian mining companies involved in critical minerals production “in the most exceptional of circumstances.”The deal follows setbacks for both companies. Teck began a review of the QB2 operation last week after being dogged by setbacks for years. Anglo, meanwhile, recently saw its plans to sell its coal mines collapse and now faces the challenge of finding a new buyer. It is also trying to sell De Beers during one of the diamond industry’s deepest-ever crises..© 2025 Bloomberg L.P.

Miningweb: Anglo American to acquire Teck, creating more than $50bn mining giant

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