Miningweb: Anglo and Teck to merge into copper giant - definitive defence against BHP, Glencore

Key topics:Merger of equals: Anglo American and Teck combine to create Anglo Teck plc, with Anglo shareholders holding 62.4%.Copper powerhouse: Projected copper output of 1.2m tonnes annually, rising to 1.35m tonnes by 2027.Global commitments: HQ in Vancouver, listings in London, Johannesburg, Toronto, and New York, with binding pledges to Canada and South Africa..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.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..LISTEN - FULL PRESS CONFERENCE: Anglo American and Teck Resources merger.Miningweb Reporter.In a landmark move set to reshape the global mining landscape,Anglo American and Teck Resources have announced a definitive agreement to combine in what they are calling a merger of equals, creating a new industry titan named Anglo Teck plc. While the partners are positioning it as merger, the FT this morning reported the imminence of what it described as a $20bn takeover of Canada’s Tek by UK headquartered multinational Anglo. To facilitate the merger and streamline its balance sheet, Anglo will pay a special dividend of US$4.5 billion (approximately US$4.19 per share) to its shareholders ahead of completion. Upon completion of the transaction, existing Anglo will own approximately 62.4% of Anglo Teck, with Teck shareholders owning the remaining 37.6%. The deal will be structured through a plan of arrangement where Teck shareholders receive 1.3301 Anglo American ordinary shares for each Teck share they hold.Tek’s shares jumped by a quarter in the after hours trade ahead of this morning’s announcement. In 2023 it was the subject of a hostile takeover bid from Glencore, warded off through the $7bn sale of its steelmaking coal business. Last year Anglo narrowly averted being acquired by BHP Billiton in a £39bn hostile bid.The proposed merger between the two groups is seen as a powerful defence against being unw8illingly swallowed, and a doubling down on copper. The FT reports that Tek is set to produce up to 525 000 tons of copper in 2025 and has plans to significant expand production. The companies say the deal will establish a premier global producer of critical minerals, with an overwhelming focus on copper, and is poised to deliver significant value to shareholders through substantial synergies and a powerful growth pipeline.The new entity will be headquartered in Vancouver, Canada, a top-five global copper producer with a portfolio with over 70% exposure to the red metal, a cornerstone of the global energy transition. The transaction, unanimously recommended by the boards of both companies, is expected to close within 12 to 18 months, pending shareholder and regulatory approvals.Copper-Focused FutureThe strategic rationale behind the merger is the creation of a world-leading portfolio of future-facing commodities. Anglo Teck will command an impressive asset base including six world-class copper operations.Upon formation, the combined company's annual copper production is expected to be approximately 1.2 million tonnes, with a clear growth trajectory to reach 1.35 million tonnes by 2027. This output will be driven by a portfolio of long-life, low-cost assets in established mining jurisdictions, including:Collahuasi and Quebrada Blanca in ChileQuellaveco and Antamina in PeruLos Bronces in ChileHighland Valley Copper in CanadaBeyond copper, Anglo Teck will maintain a strong, diversified cash flow base from its high-quality premium iron ore operations in South Africa and Brazil and a significant zinc business, highlighted by the world-class Red Dog mine in Alaska. The company will also continue Anglo American's announced portfolio simplification, including the separation of De Beers and the disposal of its steelmaking coal and nickel assets.Financial Blueprint The merger is built on a value creation proposition, underpinned by what the companies call significant and clearly identified synergies. Anglo Teck anticipates delivering US$800 million in pre-tax recurring annual synergies by the fourth year post-completion. These savings are expected from downsizing corporate overheads, leveraging procurement scale, and aligning marketing models.At a practical level the combination unlocks a unique, long-term value opportunity through the operational integration of the adjacent Collahuasi and Quebrada Blanca mines in Chile. By optimizing these neighbouring assets, Anglo Teck expects to generate an additiona US$1.4 billion in annual average underlying EBITDA between 2030 and 2049. This synergy is projected to add approximately 175,000 tonnes of additional annual copper production.New Global Headquarters In a significant move,Anglo Teck's global headquarters will be established in Vancouver, Canada, solidifying its position within a key mining ecosystem. The leadership team will reflect the merger of equals, with Anglo American's Duncan Wanblad serving as Chief Executive Officer and Teck's Jonathan Price as Deputy CEO. John Heasley will assume the role of CFO, and Sheila Murray will be appointed Chair of the Board. The CEO, Deputy CEO, CFO, and a significant majority of the senior executive team will be based in Canada.While Canada will serve as the global headquarters, the company says it will will maintain a powerful international presence with corporate offices in London and Johannesburg, drawing on three key centres of mining finance and expertise. To ensure broad access to capital, Anglo Teck will pursue aprimary listing on the London Stock Exchange (LSE), complemented by listings on the Johannesburg Stock Exchange (JSE), Toronto Stock Exchange (TSX), and the New York Stock Exchange (NYSE).Commitments to Canada and South AfricaRecognizing the deep heritage of both companies, Anglo Teck has outlined extensive commitments to its key operating jurisdictions.For Canada, the company has made binding undertakings under the Investment Canada Act. This includes a commitment to invest at least CAD$4.5 billion in Canada over five years in projects like the Highland Valley Copper Mine Life Extension, enhancing processing capacity at its Trail operations, and advancing new copper projects in British Columbia. Crucially, Anglo Teck has committed to maintaining current employment levels in Canada with no net reduction in jobs as a result of the merger.For South Africa, Anglo Teck will continue Anglo American's long-standing commitment to the country's economic growth and national priorities. This includes ensuring meaningful South African representation on the board and executive team and complying with all empowerment and mining license requirements. The new company also plans to make financial contributions to South Africa's Junior Mining Exploration Fund, fostering the next generation of miners in the region.The Path ForwardThe merger is subject to customary closing conditions, including approvals from both Anglo American and Teck shareholders. It must also clear regulatory hurdles in several jurisdictions, most notably receiving approval under theInvestment Canada Act and competition clearances in countries including Australia, China, the EU, and the US.Both Duncan Wanblad and Jonathan Price expressed strong support for the transaction. Mr. Wanblad hailed it as an opportunity to unlock "outstanding value both in the near and longer term," forming a "global critical minerals champion". Mr. Price described the deal as a "natural progression" that creates a "leading global critical minerals champion headquartered in Canada" with "enormous resiliency and optionality".As the mining world watches, the formation of Anglo Teck promises to create a formidable new force, strategically positioned to supply the essential materials for a sustainable future while delivering robust returns to its stakeholders..Read the full statement from Anglo American below

Miningweb: Anglo and Teck to merge into copper giant - definitive defence against BHP, Glencore

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