Teck Resources Limited and Anglo American plc on Tuesday announced they had agreed to combine via a merger of equals to create a copper and other critical minerals giant with a market capitalization of over $53 billion.
Teck Resources and Anglo American will create the Anglo Teck group, which will be a global critical minerals champion and top five global copper producer, headquartered in Canada and expected to offer investors more than 70% exposure to copper, the companies said in a joint press release.
Anglo Teck will hold an industry-leading portfolio of producing operations, including six world-class copper assets, alongside high-quality premium iron ore and zinc businesses, they added.
Both companies have divested operations in recent years to simplify portfolios and focus on key critical minerals markets, such as copper, zinc, and iron ore.
Anglo American last year sold its remaining portfolio of steelmaking coal mines in Australia to Peabody Energy, after rejecting takeover offers from mining giant BHP earlier in 2024.
Anglo American said in May 2024 that it plans to divest or demerge its diamond, platinum, steelmaking coal, and nickel businesses as it seeks to radically simplify its portfolio to focus on its copper, premium iron ore, and crop nutrients assets.
Teck Resources, for its part, divested in 2023 its coal operations to Glencore in a $9-billion transaction, after rebuffing a Glencore takeover offer for the entire company.
Now the Anglo-Teck merger is creating a major copper, zinc, and iron ore miner in a transformative deal, which is subject to customary closing and regulatory conditions, expected to complete within 12-18 months.
Key leadership roles at the new company Anglo Teck will be based in Canada, including Anglo American’s Duncan Wanblad as CEO and Teck’s Jonathan Price as Deputy CEO.
“Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.” said Duncan Wanblad, CEO of Anglo American.
Jonathan Price, currently CEO of Teck, commented, “It is a natural progression of our strategy and portfolio simplification, which created a platform to enable exactly this sort of transformative transaction.”
By Michael Kern for Oilprice.com
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