Anglo American and Teck merge in $53 billion deal to form a global copper giant
London-listed Anglo American and Canada’s Teck Resources unveiled plans on Tuesday to merge in a landmark deal that would create one of the world’s largest copper-focused mining companies. The all-share transaction, valued at more than $53 billion, is set to be the second-biggest mining M&A deal in history, after Glencore’s $90 billion merger with Xstrata in 2013.
Under the agreement, Anglo American shareholders will hold 62.4% of the new entity, while Teck shareholders will own 37.6%. The combined company, to be named Anglo Teck, will be headquartered in Canada but maintain its primary stock listing in London.
Betting big on copper
The deal underscores Anglo American’s strategic pivot toward copper, a commodity poised to benefit from soaring demand in the energy transition. Copper is essential for electric vehicles, renewable energy infrastructure, and power-hungry data centers that underpin artificial intelligence systems.
Once completed, Anglo Teck will become the fifth-largest copper producer globally, with adjacent mines in Chile — including Teck’s flagship Quebrada Blanca and Anglo’s Collahuasi — expected to deliver significant operational synergies.
“This is a consolidation that makes sense and brings complementary cultures together,” said Adam Matthews of the Church of England Pensions Board, an Anglo shareholder.
A “true merger of equals”
Anglo CEO Duncan Wanblad will lead the new company as CEO, with Teck’s Jonathan Price serving as deputy CEO. Wanblad described the merger as a “true merger of equals” with a board evenly split between Anglo and Teck directors.
The companies expect the tie-up to generate $800 million in annual cost savings within four years of closing. Importantly, the transaction carries a zero-premium, all-share structure — a design Wanblad said allows both sides to “draw on the best of both” without diluting value.
Anglo shareholders, however, will receive a $4.5 billion special dividend as part of the agreement.
Defensive move in a consolidating sector
Both Anglo and Teck have faced aggressive takeover attempts in recent years. Anglo rejected a $53 billion bid from BHP in 2024, while Teck fended off a $22.5 billion offer from Glencore in 2023 before selling its steelmaking coal division to Glencore for $6.93 billion.
Some analysts view the Anglo–Teck merger as a defensive strategy to stave off further unsolicited bids. “I think the deal itself is a very strong defence,” one source close to negotiations told Reuters.
Still, the zero-premium structure may invite rival offers. Analysts at Berenberg noted that “interloper risk will be a big question for the market on this deal,” highlighting BHP and Glencore as potential challengers. If either company makes a move, Anglo and Teck could still entertain rival bids, though a $330 million break fee would apply.
Market reaction and regulatory hurdles
Shares of both companies surged on the news: Anglo’s London-listed stock jumped over 9%, its biggest daily gain in more than a year, while Teck’s U.S.-listed shares climbed 10.4% in pre-market trading.
The merger is expected to face a lengthy approval process, with regulatory clearance likely to take 12–18 months. Teck’s controlling Keevil family, which holds a majority of the company’s Class A shares, has already pledged support, a move that could smooth the path forward in Canada.
Maintaining Anglo Teck’s headquarters in Canada is seen as a concession to protect Teck’s “Canadian legacy” and win favor from regulators who previously opposed Glencore’s takeover bid.
“This merger creates a stronger, more resilient platform with the scale and flexibility to seize opportunities across the copper market,” said Wanblad. “It’s about building a company ready for the next generation of mining.”
If approved, the Anglo–Teck deal will reshape the global copper industry, giving Europe and Canada a new champion in a sector increasingly vital to the energy transition and digital economy.
