London-based mining company Anglo American has unveiled plans to merge with Canadian rival Teck Resources, creating a $53 billion (£39 billion) copper-focused mining powerhouse.
Announced on September 9, 2025, the deal is the largest mining sector merger in over a decade and aims to capitalize on the surging global demand for copper, driven by electric vehicles, renewable energy infrastructure, and AI-powered data centers.
Strategic Merger Details
The merged entity, named Anglo Teck, will be headquartered in Vancouver, Canada, but will retain its primary listing on the London Stock Exchange, with additional listings in Johannesburg, Toronto, and New York.
Anglo American shareholders will own 62.4% of the new company, while Teck Resources shareholders will hold 37.6%. The deal, structured as a zero-premium, all-share merger, includes a $4.5 billion special dividend for Anglo shareholders, equivalent to $4.19 per share.
Anglo American’s CEO, Duncan Wanblad, described the merger as a “true merger of equals,” emphasizing that it builds on both companies’ strengths without requiring a premium payment.
Wanblad will lead Anglo Teck as CEO, with Teck’s CEO, Jonathan Price, serving as deputy CEO. The board will be composed equally of directors from both companies, and senior executives will be based in Canada to align with commitments under Canada’s Investment Canada Act, which includes a guarantee of no net job losses in Canada.
Operational and Financial Benefits
The merger is expected to deliver $800 million in annual cost savings by the fourth year post-completion, with $60 million from streamlining board and head office functions and $150 million from reducing overlapping corporate overheads.
The proximity of Anglo’s Collahuasi and Teck’s Quebrada Blanca copper mines in Chile is anticipated to enhance operational efficiencies.
The combined market capitalization of Anglo Teck exceeds $53 billion, positioning it as one of the world’s largest copper producers. Copper’s critical role in electrification and technology makes this merger a strategic move to meet growing global demand.
Market and Regulatory Outlook
Following the announcement, Anglo American’s shares rose over 7% in London trading, marking their largest daily gain in over a year, while Teck’s Frankfurt-listed shares surged nearly 22% and its U.S.-listed shares climbed 10.4% in pre-market trading.
The merger requires regulatory approval in Canada and South Africa, a process Teck’s CEO Jonathan Price estimates could take 12 to 18 months. The deal has secured support from Teck’s majority A-class shareholders, including the Keevil family.
Analysts have noted potential risks of rival bids, with companies like Glencore, which previously pursued Teck, and BHP, which targeted Anglo, possibly considering counteroffers to bolster their own copper portfolios.
Background and Industry Context
Both companies have been takeover targets in recent years.
Anglo American rejected a £39 billion bid from BHP in 2024, prompting a major restructuring that included spinning off its platinum business and exploring the sale of its De Beers diamond division.
Teck, meanwhile, fended off a £16.6 billion buyout offer from Glencore in 2023. The Anglo-Teck merger follows the industry’s largest deal, the $90 billion Glencore-Xstrata merger in 2013, and reflects the mining sector’s race to secure copper assets amid rising demand.
Looking Ahead
The merger positions Anglo Teck as a global leader in critical minerals, with a streamlined focus on copper and iron ore.
While the deal promises significant cost savings and operational synergies, it also raises concerns about potential job cuts in corporate functions outside Canada due to “de-duplication and rationalization” efforts. If approved, the merger is expected to close within 12 to 18 months, reshaping the global mining landscape.
