Anglo American and Teck are joining forces

Big news in the mining sector. Anglo American and Teck Resources Limited are joining forces in a merger of equals to create Anglo Teck — a new global leader in critical minerals, headquartered in Canada. Both companies have issued a press release (Anglo American press release, Teck Resources press release) informing about this deal and its details.

Top 5 producers

The combined company will be a top 5 copper producer, with more than 70% copper exposure and a diversified portfolio including premium iron ore, zinc, and future-facing growth projects. Together, Anglo Teck will manage six world-class copper assets across Chile, Peru, and Canada, supported by major iron ore operations in Brazil and South Africa, and zinc production from Alaska and British Columbia.

The merger is expected to unlock US$800 million in annual recurring synergies and an additional US$1.4 billion EBITDA uplift from the integration of adjacent operations at Collahuasi and Quebrada Blanca from 2030 onwards. Shareholders will see Anglo American hold ~62.4% and Teck ~37.6% of the new company.

A global critical minerals champion

As Duncan Wanblad FREng, CEO of Anglo American, put it: “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. 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.”

And Jon Price, CEO of Teck, added: “This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada – a top five global copper producer with exceptional mining and processing assets located across Canada, the United States, Latin America, and Southern Africa. It is a natural progression of our strategy and portfolio simplification, which created a platform to enable exactly this sort of transformative transaction. Bringing together our world-class copper assets, premium iron ore and zinc operations and an outstanding pipeline of high-quality growth projects provides enormous resiliency and optionality. This transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and all stakeholders.”

Reply to market economy

With listings in London, Johannesburg, Toronto and New York, Anglo Teck will combine scale, resilience, and growth optionality to meet the world’s increasing demand for responsibly produced critical minerals.