Torys advising Anglo American; Stikeman Elliott and Felesky Flynn representing Teck
Teck Resources Limited and Anglo American plc have struck a deal to merge in a transaction valued at US$50 billion (about C$68 billion), forming Anglo Teck, a new heavyweight in the global mining sector and one of the world’s top five copper producers.
The newly formed Anglo Teck will be headquartered in Vancouver and promises investors exposure to more than 70 percent copper, anchored by a portfolio of six major copper assets. The group will also control premium iron ore and zinc operations, positioning itself as a key supplier of critical minerals.
With the merger, Anglo Teck is set to become one of the largest copper producers globally, boasting access to some of the highest-quality copper reserves. The company’s pipeline includes major brownfield and greenfield copper projects in established mining jurisdictions, with plans to expand further. Beyond copper, Anglo Teck will retain flexibility to grow its iron ore, zinc, and crop nutrients businesses.
The companies expect the merger to generate about US$800 million (C$1.1 billion) in annual pre-tax synergies by the end of the fourth year, with most of those savings realized within two years. Integration of the neighboring Collahuasi and Quebrada Blanca operations is projected to add an average of US$1.4 billion (C$1.9 billion) in annual underlying EBITDA from 2030 to 2049, and boost annual copper output by an estimated 175,000 tonnes.
Under the terms of the deal, Anglo American shareholders will receive a special dividend of US$4.5 billion (C$6.1 billion) before the merger closes. They will own 62.4 percent of the new company, while Teck shareholders will hold the remaining 37.6 percent.
“We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long,” said Anglo American CEO Duncan Wanblad in a press release. “We are all committed to preserving and building on the proud heritages of both companies, both in Canada as Anglo Teck the combined company’s natural headquarters and in South Africa where our commitments to investment and national priorities endure. Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.”
“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,” said Teck CEO Jonathan Price. “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.”
Governance of the new company will be split evenly, with each firm nominating half of Anglo Teck’s non-executive directors. Sheila Murray is set to serve as chair, while Duncan Wanblad will take the helm as CEO, Jonathan Price as deputy CEO, and John Heasley as CFO.
The boards of both companies unanimously support the merger, which is expected to close within 12–18 months, subject to customary approvals.
Legal counsel for Anglo American includes Torys LLP, Latham & Watkins LLP, and Webber Wentzel, with Centerview Partners, Morgan Stanley, Goldman Sachs, and RBC Capital Markets advising on financial matters. Teck is represented by Stikeman Elliott LLP, Felesky Flynn LLP, and Freshfields LLP, with Ardea Partners LP and BMO Capital Markets serving as financial advisors.
