- Teck Resources and Anglo American are merging to form Anglo Teck, a Canada-headquartered global mining leader and top five copper producer, offering investors over 70 per cent copper exposure
- The merger is expected to generate US$800 million in annual synergies and unlock an additional US$1.4 billion in revenue synergies from adjacent Chilean copper operations starting in 2030
- Anglo Teck will combine six world-class copper assets, premium iron ore and zinc operations, and invest C$300 million in Canadian critical minerals development over five years
- Teck Resources stock (TSX:TECK) last traded at C$49.13
In a landmark move set to reshape the global mining landscape, Teck Resources (TSX:TECK) and Anglo American plc (OTC:NGLOY) announced a definitive agreement to merge in a transaction described as a “merger of equals.” The newly formed entity, Anglo Teck, will be headquartered in Canada and positioned as a global leader in critical minerals, with a particular focus on copper.
This content has been prepared as part of a partnership with Teck Resources Ltd. and is intended for informational purposes only.
The merger will create one of the world’s top five copper producers, offering investors over 70 per cent exposure to copper—a metal central to the energy transition and electrification. Anglo Teck will combine six world-class copper assets with premium iron ore and zinc operations, establishing a diversified and resilient portfolio across key mining jurisdictions.
Synergies and growth potential
Anglo Teck is expected to deliver approximately US$800 million in annual pre-tax synergies within four years of completion, with 80 per cent realized by year two. Additionally, the company anticipates US$1.4 billion in annual EBITDA revenue synergies from 2030 to 2049 through operational integration of adjacent Chilean copper assets—Collahuasi and Quebrada Blanca.
The merger will be executed via a plan of arrangement, with Anglo American issuing 1.3301 shares for each Teck share. Anglo American shareholders will receive a special dividend of US$4.5 billion prior to completion, ensuring balanced value participation. Post-merger, Anglo American and Teck shareholders will own approximately 62.4 per cent and 37.6 per cent, respectively, of Anglo Teck plc.
Leadership and global presence
Anglo Teck will be led by Duncan Wanblad as CEO, Jonathan Price as deputy CEO, and John Heasley as CFO, with Sheila Murray as Chair. The company will maintain corporate offices in London and Johannesburg, working to reinforce its global footprint while anchoring its headquarters in Vancouver.
Enhancing the copper portfolio
Anglo Teck’s copper production is expected to grow from 1.2 million tonnes to 1.35 million tonnes by 2027, driven by long-life, low-cost assets including:
- Collahuasi (Chile) – 245.8kt (44 per cent ownership)
- Quebrada Blanca (Chile) – 207.8kt (60 per cent ownership)
- Quellaveco (Peru) – 306.3kt (60 per cent ownership)
- Los Bronces (Chile) – 172.4kt (50.1 per cent ownership)
- Highland Valley Copper (Canada) – 102.4kt (100 per cent ownership)
- Antamina (Peru) – 96.1kt (22.5 per cent ownership)
Beyond copper: Iron ore, zinc, and critical minerals
Anglo Teck will also be a major producer of premium iron ore (61 million tonnes annually) and mined zinc, with operations such as the Red Dog mine in Alaska and the Trail Operations in British Columbia. The company plans to invest C$300 million over five years in Canadian mineral exploration and technology, including expanding production of germanium and other specialty minerals.
Portfolio simplification
Anglo Teck will continue Anglo American’s strategy to simplify its portfolio, including the separation of De Beers, and the disposal of steelmaking coal and nickel assets, ensuring a focused approach to critical minerals.
Leadership insights
“This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada – a top five global copper producer with exceptional mining and processing assets located across Canada, the United States, Latin America, and Southern Africa,” Teck’s CEO, Jonathan Price, said in a news release. “It is a natural progression of our strategy and portfolio simplification, which created a platform to enable exactly this sort of transformative transaction. Bringing together our world-class copper assets, premium iron ore and zinc operations and an outstanding pipeline of high-quality growth projects provides enormous resiliency and optionality. This transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and all stakeholders.”
About Teck Resources
Teck is a Canadian resource company with a portfolio of copper and zinc operations across North and South America, in addition to a copper growth pipeline.
Teck Resources stock (TSX:TECK) last traded at C$49.13 and has lost 15.77 per cent since the year began.
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