Anglo American and Teck Resources have announced a merger of equals that will create Anglo Teck, a global critical minerals giant positioned as one of the world’s top five copper producers.
The newly formed company is expected to provide investors with exposure to an entity that is 70% focused on copper, marking a strategic pivot towards the metals essential for the energy transition and a material shift in Anglo American’s traditionally diversified approach.
Anglo Teck will hold six world-class copper assets, notably the Collahuasi and Quebrada Blanca operations in Chile, which present significant optimisation opportunities.
The new group will also operate high-quality premium iron ore and zinc operations.
Anglo Tek will remain listed in London with additional listings on the Johannesburg Stock Exchange, Toronto Stock Exchange, and New York Stock Exchange through American Depositary Receipts.
Structure
Under the merger terms, Anglo American will issue 1.3301 ordinary shares to existing Teck shareholders for each outstanding Teck class A common share and class B subordinate voting share. This exchange ratio reflects a true merger of equals at current market values.
A key feature of the transaction is a substantial US$4.5 billion (approximately US$4.19 per share) special dividend that Anglo American will pay to its shareholders ahead of completion.
Following completion, Anglo American shareholders will own approximately 62.4% of Anglo Teck, with Teck shareholders holding 37.6%.
Management anticipates US$800 million in pre-tax recurring annual synergies, with approximately 80% realised within two years of completion. These savings will come from economies of scale, operational efficiencies, and commercial excellence across the combined operations.
Perhaps most significantly, the merger unlocks extraordinary value from the adjacent Collahuasi and Quebrada Blanca operations. Anglo Teck expects to realise an additional US$1.4 billion in underlying EBITDA uplift annually from 2030-2049 through operational integration and optimisation of these Chilean assets.
This synergy opportunity could increase copper production by approximately 175,000 tonnes annually, representing a substantial addition to global copper supply.
“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,” said Duncan Wanblad, Chief Executive Officer of Anglo American.
“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.”