In a landmark move, Anglo American (LON: AAL) and Teck Resources (TSX: TECK.A/TECK.B, NYSE: TECK) announced a $50 billion all-share merger that would reshape the global mining landscape. The combined company, to be named Anglo Teck, is set to become the world’s fifth-largest copper producer if regulators in Canada, the U.S., and China give their nod of approval.
This merger is about positioning both companies at the forefront of the global shift towards electrification and renewable energy, where copper plays a vital role. With global copper demand soaring, Anglo Teck is set to benefit from some of the highest-quality copper assets in the world.
Anglo American–Teck Deal: A Smart Move Balancing Value and Growth
For 2024, Anglo American reported $8.46 billion in underlying EBITDA, while Teck reported CAD$2.93 billion. The merger is expected to enhance margins, scale, and resilience through operational synergies and expanded assets.
The structure of the merger has raised eyebrows and interest alike. The press release highlights that Anglo American will exchange 1.3301 shares for each Teck share, calling it a “zero-premium” deal.
However, analysts have pointed out that this translates to a 17% premium on Teck’s recent share price. Anglo plans to offset this with a $4.5 billion special dividend to its shareholders, lowering the effective premium to just 1%.
Once completed, Anglo shareholders will control 62.4% of the new company, while Teck shareholders will hold 37.6%.
Leadership roles are well-defined: Anglo’s CEO Duncan Wanblad will lead Anglo Teck, with Teck’s Jonathan Price serving as deputy CEO. The global headquarters will be based in Vancouver, with streamlined offices in London, and listings planned in Toronto, Johannesburg, and New York.
At the Core: Copper Fuels Anglo Teck’s Strategy
Copper is the driving force behind the merger. Both Anglo and Teck have been refining their portfolios, moving away from coal and diamonds and focusing on minerals that are key to clean energy. Teck’s prized Quebrada Blanca (QB) mine in Chile is central to the strategy, despite its past challenges with cost overruns and operations.
Anglo’s access to QB’s assets will bolster its copper output at a time when demand from electric vehicles, solar farms, and grid expansion is accelerating.
Franck Bekaert, senior bond analyst at Gimme Credit, pointed out that Anglo Teck will emerge as a leading copper producer with a diversified portfolio that includes iron ore and zinc.”
Unlocking Synergies: QB and Collahuasi
One of the merger’s standout features is the operational synergy between two adjacent copper mines in Chile, Quebrada Blanca and Collahuasi. The latter is co-owned by Anglo and Glencore. Together, the mines are expected to deliver up to $1.4 billion in EBITDA gains through shared procurement and operational efficiencies. The companies estimate $800 million in annual pre-tax recurring synergies by combining resources, infrastructure, and expertise.
Though Glencore wasn’t consulted on the deal, the logic of combining operations has long been recognized as a path to reducing costs.
Building a Premier Critical Minerals Portfolio
Anglo Teck’s portfolio will include six world-class copper assets, along with premium iron ore and zinc businesses. The merger will also strengthen Anglo’s existing partnerships, such as a joint plan with Codelco in Chile and exploration opportunities across Canada, Latin America, the U.S., Europe, and Africa.
Here’s a glimpse of the production assets that will shape Anglo Teck’s future:
Additionally, Anglo Teck will remain a major player in iron ore and zinc markets, including Red Dog (Alaska) and Trail Operations (British Columbia).
Anglo Teck’s Vision to Make Canada a Critical Minerals Powerhouse
With the merger, Canada takes center stage. Anglo Teck’s global headquarters will be located in Vancouver.
The new company has committed to investing CAD$4.5 billion over five years across Canadian projects. It includes extending the life of Highland Valley Copper, expanding processing at Trail Operations, and exploring new copper resources in British Columbia.
The company also plans to work closely with Indigenous communities, labour unions, and local governments, ensuring that growth supports regional development and social inclusion.
As part of this commitment, Anglo Teck will partner with the Government of Canada to establish a Global Institute for Critical Minerals Research and Innovation. It aims to foster advanced exploration techniques, AI-driven geoscience, and sustainable mining practices.
The Canadian Government highlighted that,
- In 2023, Canadian mines produced 508,250 tonnes of copper in concentrate, with nearly half originating from British Columbia.
- Canada’s exports of copper and copper-based products were valued at $9.4 billion in 2023.
Furthermore, industry reports also say that the copper market in the USA and Canada is valued at approximately USD 23.09 billion in 2025 and is projected to grow to USD 37.88 billion by 2035, at an annual growth rate (CAGR) of 5.1%.
With a planned TSX listing and a strong North American presence, Anglo Teck aims to make Canada a critical minerals hub, creating jobs, driving innovation, and supporting clean energy goals.
Duncan Wanblad, Chief Executive Officer of Anglo American, commented:
“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. We are all committed to preserving and building on the proud heritage of both companies, both in Canada, as Anglo Teck’s natural headquarters, and in South Africa where our commitment to investment and national priorities endure. Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.”
Growth Beyond Copper: Innovation and Exploration
The merger isn’t limited to copper alone. Anglo Teck is poised to grow in other critical minerals, such as germanium, crop nutrients, and premium iron ore. It also plans to invest across Latin America, the U.S., Europe, and Africa, in addition to its exploration projects in Canada.
By backing Galore Creek, Schaft Creek, and Zafranal, the company expands its portfolio and strengthens the supply of critical minerals essential to the global energy transition.
Jonathan Price, Chief Executive Officer of Teck, commented:
“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.”
Thus, Anglo Teck is all set to play a pivotal role in the energy transition with copper at its core. By blending operational excellence, strategic partnerships, and exploration innovation, the new company can meet rising global demand for minerals sustainably.
