Anglo American Teams Up with Teck Resources to Create a Global Critical Minerals Champion
Anglo American has agreed to combine with Canada’s Teck Resources in a transformational deal that will create the world’s third-largest copper producer. Under the terms announced Tuesday, London-listed Anglo will own 62.4% of the combined group, with Teck shareholders owning the remaining 37.6%. The new entity, to be known as Anglo Teck, will be headquartered in Vancouver but maintain its primary stock listing in London, with secondary listings in Johannesburg, Toronto, and New York.
The merger represents a strategic bet on copper demand driven by the global energy transition, combining Anglo’s 770,000 tonnes of annual copper production with Teck’s projected 525,000 tonnes in 2025. Both companies already own parts of a giant copper complex in Chile through the Collahuasi and Quebrada Blanca mines, which will be unified under the merged entity. The companies estimate the merger will deliver pre-tax annual cost savings of $800 million, while Teck has plans to significantly expand copper production by the end of the decade.
This deal comes after both companies successfully fended off takeover attempts from larger rivals, with BHP’s failed £39 billion pursuit of Anglo American last year prompting CEO Duncan Wanblad to overhaul the business. Similarly, Teck had been the subject of takeover interest from Glencore in 2023, leading the company to subsequently strike a $7 billion deal with Glencore to offload its steelmaking coal business and focus on critical minerals.
Teck Resources Shares Surge in Premarket Trading
As of the latest trading data, Teck Resources closed at $35.11, up $0.80 or 2.33% in regular trading before surging to $41.20 (+$6.09, +17.35%) in premarket trading. The stock has faced headwinds over the past year, with a negative 17.93% return compared to the S&P/TSX Composite’s positive 27.42% performance. However, longer-term investors have been rewarded, with the stock delivering impressive 233% returns over the past five years, significantly outpacing the TSX Composite’s 80.30% gain during the same period.
