Anglo American and Teck Resources have agreed to combine in a merger of equals to form Anglo Teck, a new global leader in critical minerals and one of the world’s top five copper producers.
The transaction is designed to create value through a diversified portfolio of high-quality assets across copper, iron ore, and zinc.
The combined company will offer more than 70 percent exposure to copper, with six key producing operations in Chile, Peru, and Canada. The merger is expected to deliver approximately US$800 million in annual pre-tax synergies within four years, driven by operational efficiencies and scale benefits.
Integration of the adjacent Collahuasi and Quebrada Blanca mines could unlock an additional US$1.4 billion in average annual EBITDA from 2030 to 2049, potentially increasing copper production by around 175,000 tonnes per year.
“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,” Anglo American chief executive officer Duncan Wanblad said.
Headquartered in Canada, Anglo Teck will reflect the leadership strengths of both firms, with Anglo American shareholders holding approximately 62 percent of the new entity and Teck shareholders holding 38 percent. Prior to completion, Anglo American plans to pay a US$4.5 billion special dividend to its shareholders.
Beyond copper, Anglo Teck will maintain significant interests in premium iron ore and zinc, while advancing growth opportunities in critical minerals such as germanium and crop nutrients. Both companies bring strong commitments to sustainability and responsible mining practices, which will remain a priority under the combined group.
“The merger accelerates Anglo American’s strategy to focus on prioritising scale and high margin commodities and offers a geographically diversified pipeline of copper growth projects with strong returns,” Wood Mackenzie research director James Whiteside said.
“For Teck, the deal provides the highest copper exposure and least dilution among potential suitors while preserving strategic influence through enhanced board representation.”
The merger, subject to customary regulatory approvals, is expected to complete within 12 to 18 months. The boards of both Anglo American and Teck have unanimously recommended the transaction, reflecting confidence in the strategic and financial benefits of the combination.
Want to connect with the mining industry, register to attend AIMEX and WA Mining Conference.
