Anglo American and Teck Unveil $50B Merger to Create Copper Giant
The new entity, Anglo Teck, will become a top-five global copper producer with a strategic focus on critical minerals.
London-listed mining group Anglo American and Canada's Teck Resources have agreed to combine in a , creating a new $50 billion powerhouse in the critical minerals sector. The new company, to be named Anglo Teck, is positioned to become a dominant force in the global copper market, a metal essential for the green energy transition.
The announcement sent Teck Resources' (TECK) shares surging over 8% in pre-market trading. The deal will create a top-five global copper producer with approximately 70% of its portfolio exposed to the red metal, alongside premium iron ore and zinc assets.
Under the terms of the agreement, Anglo American shareholders will own approximately 62.4% of the combined entity, with Teck shareholders holding the remaining 37.6%. The new company will be headquartered in Vancouver, Canada, but will maintain its primary listing in London. In a move to reward its current investors, Anglo American will issue a special dividend of $4.5 billion to its shareholders before the merger's completion. The combination is expected to unlock significant efficiencies, with the companies targeting within four years.
The strategic rationale for centers on consolidating key assets, particularly their adjacent copper mines in Chile. The integration of the Collahuasi and Quebrada Blanca operations is projected to add an average of $1.4 billion in annual underlying EBITDA uplift between 2030 and 2049. Anglo American CEO Duncan Wanblad, who will lead Anglo Teck as CEO, stated, “Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.” The transaction is subject to shareholder and regulatory approvals, with an expected closing timeline of 12 to 18 months.