Teck Resources shareholders approve merger With Anglo American

Shareholders in the Canadian miner Teck Resources voted on Tuesday for the merger with Anglo American. This allows both companies to proceed to the next step of seeking approvals from regulators around the world.

Teck and Anglo American announced their merger in September in a $53 billion all-stock deal, creating the fifth largest copper miner on the planet.

Anglo-Teck would have its headquarters in Vancouver, Canada and be listed on the London Stock Exchange.

Anglo-Teck's portfolio is expected to produce "more than 1.2 millions tonnes of copper per year", the companies have said.

The demand for copper has increased as major AI companies look for reliable sources of electricity to power the data center boom. This puts global miners on the map and encourages consolidation.

Both companies have adjacent copper mines, Quebrada Blanca y Collahuasi in Chile. These are expected to bring further operational benefits.

Teck's flagship mine is Quebrada Blanca, but tailings issues related to mine waste disposal have caused it to?miss production forecasts, which has dragged down the company’s shares.

The merger between Teck and?Anglo is a defensive move against hostile offers of other mining giants, such as BHP and Glencore.

Analysts claim that the deal, for the time being, has put any interlopers from breaking the deal on hold. The merger opens the door to other mining companies making mega-acquisitions. (Divyarajagopal reported from Toronto and TanayDhumal from Bengaluru. Anil D'Silva edited the article.)

(source: Reuters)