Anglo American merges with Teck Resources

Anglo American and Teck Resources have entered an agreement to join forces in a proposed merger of equals to form a new company — Anglo-Teck.

Anglo Teck is set to become one of the top five copper producers in the world, with combined production from its mines in Chile, Peru and Canada to be about 1.2mt, predicted to reach 1.35mt by 2027.

By bringing together the strengths of both companies, Anglo Teck will leverage proven capabilities in technical and operational excellence, sustainability, product marketing and project execution to deliver value-accretive growth.

Anglo Teck will hold an industry-leading portfolio of producing operations, including six world-class copper assets, alongside high-quality premium iron ore and zinc businesses.

Anglo American chief executive Duncan Wanblad says the companies are committed to preserving and building on the proud heritage of both companies.

“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,” he said.

The new company headquarters will be in Vancouver with majority of the executive management team living and working in Canada.

Teck Resources chief executive Jonathan Price says the merger of two highly complementary portfolios will create a leading global critical minerals champion.

“The transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and all stakeholders,” he said.

Mr Wanblad will retain his position as chief executive of the joint company, while Mr Price will serve as the deputy chief executive.

The company will inherit Anglo American’s UK incorporation and tax status, as well as its primary listing on the LSX.

The merger is subject to approval, which is expected within the next 18 months.