The deal will create one of the world’s largest copper producers, with a combined market value of more than $53 billion, ranking it second only to Glencore’s $90 billion merger with Xstrata in 2013.
Billed as a merger of equals, the newly formed Anglo Teck group would create a global copper powerhouse with annual copper production of 1.2 million metric tons, the statement said. The merger is expected to generate about $800 million in annual cost savings, as well as additional revenue of $1.4 billion on a pretax basis from 2030 through 2049.
Anglo Teck group will be headquartered in Vancouver, Canada, with additional corporate offices in London and Johannesburg, South Africa, the company said. Duncan Wanblad, former CEO of Anglo American, will lead Anglo Teck as CEO. Jonathan Price, former president and CEO of Teck, will be Anglo Teck’s deputy CEO. John Heasley assumed the role of chief financial officer at Anglo American in late 2023.
Wanblad said in a statement that the merger unlocks both near and long-term value and accelerates growth.
“We have a unique opportunity to bring together two highly regarded mining companies whose portfolios and capabilities are deeply complementary,” Wanblad said.
“Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.”
Anglo American said it will enhance its role throughout the Canadian mining sector while continuing its already strong mining presence in South Africa and other countries.
Anglo American operates the Quellaveco copper mine in Peru, which was placed into production in 2022 and is expected to produce about 300,000 tons of copper annually. Production has declined at the company’s smaller open-pit Los Bronces copper mine in the high Andes mountains of central Chile, but Anglo American said it expects to begin mining higher-grade copper ore in 2026 and 2027.
The company also has iron ore operations in Brazil and Kathu in the Northern Cape Province region of South Africa. It owns 85 percent of De Beers Group’s diamond-mining operations in Botswana, Canada, Namibia, and South Africa, as well as manganese mining operations in South Africa and Australia. Its Red Dog zinc mine in northwest Alaska is one of the world’s largest.
Teck Resources, meanwhile, has copper and zinc operations in Canada, Peru, Chile, and the United States.
Price said the merger of the complementary portfolio instantly establishes Anglo Teck as a top-five global copper producer.
“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,” Price said.
“This transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and stakeholders.”
The merger is expected to close within a year to 18 months, pending regulatory approval, the company said. Shares of Anglo American jumped nearly 8 percent on the day’s trading session on the London Stock Exchange, while Teck Resources shares were up more than 11 percent on the New York Stock Exchange.
