Anglo American and Teck Resources, Canada to merge in $50 billion deal

Anglo American announced on Tuesday that it had agreed to merge with Teck Resources. The London-listed miner would own approximately 62.4% of the combined company and the Canadian miner would hold 37.6%.

Anglo Teck's headquarters will be in Canada, but the primary listing will take place in London.

Anglo stated that the merger will generate cost savings and efficiency improvements of $800,000,000 annually by the fourth year following completion. Anglo said that the combined market capitalisation for both companies is more than $53 billion.

Anglo's Duncan Wanblad will continue to be CEO. Jonathan Price, Teck's CEO, will become the deputy CEO.

Both companies have adjacent copper mines - Quebrada Blanca & Collahuasi in Chile, which should provide further operational benefits.

In recent years, both Anglo and Teck were the focus of interest from takeover bidders. Glencore was pursuing Teck while BHP targeted Anglo because of their large copper portfolios.

The demand for copper is expected to increase sharply due to the boom in electric vehicles and new uses, such as AI-powered data centers.

(source: Reuters)