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September 10, 2025
⛏️ Anglo American and Teck Resources have agreed to merge in a landmark US$53 billion deal, forming Anglo Teck—one of the world’s largest mining entities and the fifth-largest copper producer globally. The merger marks the second-biggest acquisition in mining history, following Glencore’s US$90 billion merger with Xstrata in 2013.
The new company will be headquartered in Canada, with a primary listing in London. Anglo shareholders will hold 62.4% of the merged entity, while Teck shareholders will retain 37.6%. The deal includes a US$4.5 billion special dividend for Anglo investors.
📊 The merger is seen as a strategic pivot toward critical minerals, driven by rising copper demand linked to electric vehicles and AI infrastructure. Analysts view the move as a defensive response to previous takeover attempts, including BHP’s failed US$53 billion bid for Anglo in 2024.
Teck’s financial challenges—particularly at its Quebrada Blanca mine in Chile—also contributed to the merger’s appeal. Cost overruns and production delays had weighed on Teck’s valuation, prompting optimism that the deal will stabilize operations.
🚨 Rival miners BHP and Glencore may still intervene, though any competing bid would trigger a US$330 million break fee. Glencore previously attempted a US$22.5 billion takeover of Teck in 2023, later acquiring its coal assets for US$6.93 billion.
📝 Regulatory approval is pending across Canada, China, and the U.S., with Canadian officials reviewing the deal under the Investment Canada Act. The decision to maintain headquarters in Canada is expected to ease concerns over foreign control.
Support from Teck’s controlling Keevil family and strong market reactions—Teck shares rose 14% in Toronto, Anglo climbed 9% in London—signal investor confidence in the merger’s long-term value.
