Anglo American and Teck Resources To Merge in $70 Billion Deal
Anglo American plc and Teck Resources Limited have agreed to combine in a merger of equals to form Anglo Teck, creating one of the world's top five copper producers in a deal valued at approximately $70 billion. The merger represents the second-largest mining deal in history and positions the combined entity as a global critical minerals champion headquartered in Vancouver, Canada.
This transformative combination brings together Anglo American's South African operations with Teck's Canadian mining expertise to create a copper-focused powerhouse. The merger of equals structure aims to deliver significant cost synergies while establishing a dominant position in the critical minerals sector that will be essential for the global energy transition.
The deal's implications extend far beyond the two companies involved, potentially reshaping competitive dynamics across the global mining industry. Investors will gain exposure to a diversified portfolio of world-class assets, while the transaction's strategic focus on copper production aligns with growing demand from renewable energy infrastructure and electric vehicle manufacturing.
Overview of the Anglo American Teck Resources Merger
Anglo American plc and Teck Resources Limited announced a merger of equals valued at approximately $53 billion on September 9, 2025. The combined entity, Anglo Teck, will be headquartered in Canada and rank as a top five global copper producer.
Key Terms and Structure of the Deal
The transaction represents an all-stock merger of equals between the two mining companies. Both organisations will maintain roughly even representation across upper management and the board of directors.
The new entity will operate under the name Anglo Teck. Top executives with Anglo American plan to relocate to Vancouver, where the merged company will establish its headquarters.
The combined company will offer investors more than 70% exposure to copper. This positioning aligns with growing demand for critical minerals required in clean energy transitions.
Timeline and Closing Process
The merger announcement occurred on September 9, 2025. Both companies have begun the regulatory approval process required for transactions of this magnitude.
The deal requires approval from shareholders of both Anglo American and Teck Resources. Regulatory authorities in multiple jurisdictions must also clear the transaction before completion.
Companies have prepared presentation materials detailing the merger structure and anticipated benefits. The closing timeline depends on regulatory review processes and shareholder approval schedules.
Rationale for the Merger
Both companies believe the merger will enhance portfolio quality, resilience and strategic positioning. The combination creates significant scale advantages in copper production and critical minerals extraction.
Anglo Teck will leverage proven capabilities in technical and operational excellence, sustainability, product marketing and project execution. These combined strengths position the entity to deliver value-accretive growth.
The merger creates a global critical minerals champion with enhanced market positioning. The deal represents the second-largest mining M&A transaction ever and could reshape industry dynamics.
Strategic Benefits and Cost Synergies
The Anglo American-Teck merger creates substantial financial advantages through operational efficiencies and shared infrastructure. The combined entity expects to deliver significant synergies and strategic benefits while optimising costs across integrated mining operations.
Expected Cost Savings
The merger targets $800 million in annual pre-tax cost synergies by 2029. These savings stem primarily from operational efficiencies at adjacent Chilean mining assets.
Anglo Teck will benefit from shared infrastructure between the Collahuasi and Quebrada Blanca 2 operations. The proximity of these facilities allows for consolidated logistics and reduced overhead costs.
The integration generates an additional $1.4 billion in EBITDA uplift annually from 2030 to 2049. This increase comes from production optimisation and economies of scale across the combined copper portfolio.
Key cost reduction areas include:
- Shared mining equipment and maintenance
- Consolidated supply chain management
- Reduced administrative duplication
- Integrated processing facilities
Operational Integration
The merger combines Anglo American's operational expertise with Teck's high-grade copper assets. This pairing creates a world-class mining portfolio spanning six premium copper operations.
The integrated operations focus on Chile's copper-rich regions. Adjacent mine sites enable shared transportation networks and processing capabilities.
Production synergies arise from coordinated extraction schedules and optimised ore processing. The combined entity can better manage grade variations across multiple sites.
Integration benefits include:
- Enhanced production scheduling flexibility
- Improved resource allocation efficiency
- Coordinated exploration programmes
- Streamlined environmental compliance
Management Structure
The merger of equals structure allocates ownership based on relative company values. Anglo American shareholders retain 62.4% while Teck shareholders hold 37.6% of Anglo Teck.
This ownership split ensures balanced representation in governance decisions. The structure maintains strategic alignment between both shareholder bases throughout integration.
Leadership teams from both companies contribute specialised expertise. Anglo American brings financial strength and operational experience while Teck provides high-grade asset management capabilities.
The governance framework supports efficient decision-making across diverse geographic operations. Regional management structures remain intact to preserve local market knowledge and regulatory compliance.