Anglo American and Teck announce merger, forming critical minerals giant

Anglo American plc and Teck Resources Limited have agreed to merge, forming "Anglo Teck," a global critical minerals champion headquartered in Canada. The merger, expected to complete in 12-18 months, is anticipated to deliver $800m in pre-tax recurring annual synergies by the end of the fourth year post-completion. Additionally, $1.4bn in annual average underlying EBITDA uplift is projected from synergies between the Collahuasi and Quebrada Blanca operations from 2030-2049, potentially increasing annual copper production by approximately 175,000 tonnes.

Upon completion, Anglo American shareholders will own approximately 62.4% and Teck shareholders around 37.6% of Anglo Teck plc. Anglo American will pay a special dividend of $4.5bn (c.$4.19 per share) to its shareholders before the merger finalizes. Anglo Teck will become a top five global copper producer with an expected annual production of approximately 1.2mt, growing to 1.35mt by 2027, and will maintain listings on the LSE, JSE, TSX, and NYSE.

The combined entity will feature an industry-leading portfolio, including six world-class copper assets, premium iron ore, and zinc businesses. Anglo Teck has committed to investing at least CAD$4.5bn over five years in Canada, supporting critical minerals exploration, technology, and major project developments like the Highland Valley Copper Mine Life Extension.