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London-based company Anglo American and Canada’s Teck Resources have agreed to merge. The two giants will form a new company valued at more than $53 billion, called Anglo Teck as reported by Reuters. It will be headquartered in Canada but maintain a primary stock listing in London. Once completed, it will rank as the world’s fifth-largest copper producer, highlighting the growing importance of the metal in renewable energy, electric vehicles, and data centres.
The all-share merger will see Anglo American shareholders hold 62.4% of the new company, while Teck investors will own 37.6%. Anglo shareholders will also receive a $4.5 billion special dividend. Anglo’s CEO Duncan Wanblad will continue as chief executive, while Teck’s Jonathan Price will serve as deputy CEO. The two boards will contribute directors equally, reinforcing what Wanblad described as a ‘true merger of equals.’
The companies estimate $800 million in annual cost savings within four years of completion. Their adjacent copper mines in Chile, Quebrada Blanca and Collahuasi are expected to deliver operational benefits.
Both firms had previously resisted takeover bids, with Anglo rejecting BHP’s £39 billion ($53 billion) offer and Teck turning down Glencore’s $22.5 billion approach. Analysts suggest that while the merger strengthens both firms strategically, rival bids from Glencore or BHP cannot be ruled out.
The merger still needs regulatory approval, a process Teck estimates could take 12-18 months. The decision to keep headquarters in Canada aims to preserve Teck’s legacy and win political backing.
Shares of both companies surged on the news, with Anglo up over 9% in London and Teck gaining more than 10% in pre-market US trading. Investors see the deal as a defensive yet growth-oriented move, positioning the new company strongly in the copper market amid surging global demand.
Also Read: FTSE 100 Live: Anglo American-Teck Merger Lifts Miners as FTSE 100 Surges 0.2%, Retail in Focus
