London-listed miner Anglo American said on Tuesday it has agreed to a merger with Canada's Teck Resources in what would be the biggest mining sector merger and acquisition deal in more than a decade.
Under the proposed deal, which will require regulatory approval in Canada and South Africa, Anglo American shareholders would own 62.4% of the newly combined company, Anglo Teck, while shareholders in Teck will hold 37.6%.
Anglo Teck will be headquartered in Canada but have a primary listing in London, the companies said.
Anglo American's London shares were up more than 7% in early trading after the announcement, while Teck's Frankfurt-listed shares jumped almost 22%.
Anglo and Teck have been at the centre of takeover interest in recent years, with Glencore pursuing Teck and BHP targeting Anglo for its extensive copper portfolios.
The merger is expected to generate annual cost savings and efficiency gains of $800m (R13.9bn) by the fourth year after completion, Anglo said. The combined market capitalisation of the two companies exceeds $53bn (R926.2bn).
Anglo's chief executive Duncan Wanblad will remain CEO, while Teck’s Jonathan Price will serve as deputy CEO.
The two companies operate adjacent copper mines in Chile — Quebrada Blanca and Collahuasi — which are expected to deliver further operational benefits.
Copper demand is forecast to rise sharply, driven by the electric vehicle boom and emerging uses such as AI-powered data centres.
Reuters
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