Anglo American and Teck Merger

Deal Overview

Merging Parties: Anglo American PLC (‘Anglo American’) and Teck Resources Limited (‘Teck’) - Made Anglo Teck Plc

Total Transaction Size: $53 Billion

On September 9 th 2025, it was announced that Teck and Anglo American have agreed to a $53 billion merger-of-equals to form Anglo Teck, a new global critical minerals champion headquartered in Canada – a strategic deal that reshapes the global mining landscape. As a result, the company will have an enhanced global capital markets footprint: primary listing on LSE, listings on JSE, TSX and NYSE. The company will be one of the biggest copper producers in the world, bringing together two already well-performing companies, offering more than 70% exposure to copper.

This merger is significant as it reflects a wider shift in the industrial market, where copper demand is rising fast, reportedly rising by around 15% this year, driven not only by its role in energy transition (renewable power, grids, EVs and green infrastructure) but also due to the demand for electricity to power AI data centres. As part of the merger, shareholders of Anglo American will own around 62.4% of the new company while the Teck shareholders will have roughly 37.6%. The boards of both companies have approved the transaction, which is expected to be closed within 12-18 months, subject to regulatory and shareholder approvals.

Company Details - Anglo American

Founded: 1917, Johannesburg, South Africa

Founder: Ernest Oppenheimer

CEO (At Time of Merger): Duncan Wanblad (Appointed April 2022)

Market Valuation: $33 Billion

Anglo American was founded in 1917 as the Anglo-American Corporation with a focus on South African gold mining. Over the 20th century, it expanded globally, most notably acquiring a majority stake in De Beers in 1926, cementing its influence in diamonds and as late as the late 20 th century, they controlled over 50% of the companies listed on the Johannesburg Stock Exchange. Anglo American had become a pillar of South African wealth and power, but one that was also deeply entangled in the apartheid system, creating reputational challenges. During the 1970s and 1980s, Anglo American became the subject of intense international criticism, as global sanctions against South Africa targeted major companies linked to the regime.

The pressures were pivotal in shaping Anglo American’s later transformation. In 1999, Anglo American sought to reposition itself by merging with its Luxembourg-based affiliate Minorco and relocating its primary listing to the London Stock Exchange. This was more than a structural consolidation but a strategic repositioning to distance the company from South Africa’s political controversies. Today, under CEO Duncan Wanblad, Anglo American has sought to redefine itself as a sustainable-mining company, through its FutureSmart Mining initiative, which aims to cut water, energy, and carbon use. The company remains the world’s largest producer of platinum, while also holding major positions in diamonds, copper, nickel, and steelmaking coal, with a market cap of around US$33 billion.

Company Details - Teck

Founded: 1913, Canada (as Teck-Hughes Gold Mines; became Teck Cominco in 2001 after merging with Cominco)

Founder: Norman B. Keevil Sr

CEO (At Time of Merger): Jonathan Price

Market Valuation: $20 Billion

Teck traces its roots to Teck-Hughes Gold Mines Limited, which in 1913 became Ontario’s first gold mine in commercial production. Over the decades, the company diversified beyond gold, and in 2001 merged with Cominco, a Canadian mining and smelting company to form Teck Cominco, broadening its exposure to zinc, copper and coal. The early 2000s marked a period of sustained commodity price volatility, fuelled by China’s rapid industrialisation and the global “supercycle” in copper and zinc demand. Many mid-tier miners risked being marginalised by emerging global competitors such as BHP, Rio Tinto, and Glencore.

In 2009, the company rebranded as Teck Resources Ltd. Its flagship project, Quebrada Blanca Phase 2 (QB2) in Chile, represents the largest mining investment in the country in the past 15 years and cements Teck’s presence in South America. Today, under Jonathan Price, Teck is valued at roughly $20 billion and is a major player in copper and zinc.

The Merger

The merger of Anglo American and Teck would establish one of the most competitive copper portfolios in the global mining industry. Under the terms of the deal, each Teck share will be exchanged for 1.3301 Anglo American shares.

Timeline of the deal:

•  Q2 2024: Informal merger discussions begin following Teck’s divestment of its steelmaking coal business.

• April-July 2025: Formal negotiations.

• 9 September 2025: Official announcement of merger-of-equals agreement and board approval.

• Q4 2025-Q2 2026: Regulatory submissions filed with the Competition Bureau of Canada, the South African Department of Mineral Resources, and the UK’s Competition and Markets Authority.

They would hold interests in six tier-one copper assets in different mining jurisdictions including:

• Collahuasi (Chile): 44% ownership

• Quebrada Blanca (Chile): 60% ownership

• Quellaveco (Peru): 60% ownership

• Los Bronces (Chile): 50.1% ownership

• Highland Valley Copper (Canada): 100% ownership

• Antamina (Peru): 22.5% ownership

Combining Collahuasi and Quebrada Blanca is particularly significant as they are adjacent assets in Chile, creating potential synergies in areas such as shared infrastructure, water management as well as workforce deployment. Such synergies are projected to deliver EBITDA gains exceeding $1.3 billion annually by 2030, with full efficiency realisation expected between 2030 and 2049.

The companies’ shared cultural values and sustainability leadership is another reason for the merger. This is reflected in Teck’s renewable-powered QB2, and Anglo American’s FutureSmart Mining program. Together, these initiatives demonstrate a joint commitment to advancing low-carbon, technology-driven mining practices that align with global sustainability goals.

Both companies have also rejected acquirers in recent years, underscoring their value within a rapidly consolidating global copper market. In 2024, Anglo American turned down a $50 billion takeover bid from Australian company BHP Group last year. This was mainly because BHP’s plan to dismantle parts of Anglo American’s portfolio, notably its platinum and diamond divisions, clashed with Anglo American’s strategy of maintaining diversified exposure to critical and precious metals. The market largely supported Anglo American’s decision: share prices initially dipped by around 3%. Similarly, Teck rejected a $23 billion bid by Glencore in 2023. According to Teck’s board, the Glencore proposal “would expose Teck shareholders to a large thermal coal business, an oil trading business and significant jurisdictional risk”, and was “contrary to our ESG commitments”. Instead, they sold their steelmaking coal business to the Swiss commodities group the following year highlighting a move to focus on copper-first strategy, aligning with the shift to global energy transition.

Risks and Regulatory Challenge

The Anglo American-Teck merger, by combining to create a copper powerhouse, draws intense scrutiny from regulatory bodies worldwide. Regulatory experts note that the comprehensive review process could extend the timeline for completing the merger by about 12-18 months.

Foremost among these legal contentions are concerns raised by the Competition Bureau of Canada, which has initiated a review the merger’s antitrust process. The Bureau’s assessment focuses on several key areas, including:

• Potential anti-competitive impacts in relevant mineral markets

• Market concentration effects, particularly in copper and coal segments

• Possible effects on pricing power for these commodities

• Implications for suppliers, customers, and competitors in the Canadian mining ecosystem

Beyond the Competition Bureau’s antitrust review, there are additional regulatory hurdles that must be cleared. For instance, the transaction will need to review under Ottawa’s “exceptional circumstances” test, in accordance with the Investment Canada Act. The legislation, which governs foreign investments in Canadian companies, requires deals to demonstrate a clear ‘net-benefit’, considering factors such as employment, capital investment, technological development and productivity. Teck has made a series of commitments to secure approval, including maintaining regional offices in Calgary and Sparwood for at least a decade, appointing Canadians to a majority of leadership roles in its coal business, and reinvesting significantly in Canada’s copper portfolio.

Similarly, in South Africa, the combined entity will need to demonstrate continued compliance with the Mining Charter III requirements, a regulation introduced under the Mineral and Petroleum Resources Development Act 2002. Implemented in 2018, it aims to accelerate economic transformation and promote equitable access to the nation’s mineral resources. For instance, a core requirement of the Charter is that at least 26% of mining equity must be held by “historically disadvantaged South Africans”.

Finally, a potential risk has recently emerged that the deal may not be realised due to recent downward revisions in Teck’s copper production forecast. Teck’s third-quarter copper sales reached 110,300 tonnes, below expectations of 129,000 tonnes, and its full year production guidance has been reduced to 415,000-465,000 tonnes from 470,000-525,000 tonnes. This is a result of ongoing operational challenges at the aforementioned QB2 project in Chile, particularly concerning the development of its tailings management facility. However, Anglo American has stated that the transaction is expected to remain unaffected.

Success and Future Implications

Following the September 2025 announcement, both companies’ share prices rose sharply, Anglo American by 5% on the London Stock Exchange and Teck by 9% on the Toronto Stock Exchange, reflecting investor confidence in the merger’s strategic rationale. The merger also intensified the global competition for copper assets, especially as demand continues to surge for the energy transition. Copper prices, which had averaged $4.20/lb in early 2025, briefly rose to $4.48/lb in the week following the merger’s announcement.

The merger also signals a geographical shift in global mining. Anglo Teck’s new focus on Canada, backed by a CAD $4.5 billion investment over the next five years, will strengthen Canada’s role as a hub for sustainable mining. This includes extending the life of the Highland Valley Copper Mine as well as continuing to develop new copper projects in British Columbia.

It is also a reminder of how the corporate landscape is changing. With Anglo American moving leadership to Canada, and BHP already shifting its primary listing from London to Australia, the UK faces the erosion of its traditional status as a leading hub for multinational mining giants to operate. Rising energy costs - driven by supply chain disruptions and reduced Russian gas imports - has significantly increased operational costs for energy-intensive industries. Post-Brexit regulatory changes have also added layers of complexity, with companies facing additional customs procedures and tariffs, making London a less attractive centre for resource-based companies.

Ultimately, this merger epitomises 2025’s mining trends: consolidation for scale, a pivot towards critical minerals and deepening commitment to sustainability imperatives, but also a watershed moment in the global regulation and governance of resource extraction. As global EV adoption surges, and renewables scale, copper’s ‘green gold’ status is assured. Despite this, success hinges on innovation, recycling and supportive policies to bridge supply gaps.