Anglo American and Teck Resources are merging in what will be the second-largest mining deal in history, the two companies announced on Tuesday. The tie-up will create a new heavyweight in the global copper market, a metal seen as vital for the future of clean energy and technology.
Under the agreement, which still needs regulatory approval, Anglo American shareholders will own 62.4 percent of the new company, to be called Anglo Teck, while Teck shareholders will hold 37.6 percent.
The combined company will be headquartered in Canada but keep its primary stock listing in London. Together, they will have a market capitalization of more than 53 billion dollars, making Anglo Teck the world’s fifth-largest copper producer.
The move marks a major bet by Anglo American on copper, which is in high demand for electric vehicles, renewable energy projects, and data centers powering artificial intelligence. The only bigger mining merger to date remains Glencore’s 90 billion dollar deal with Xstrata in 2013.
Competition for copper assets has been intensifying. Mining companies are racing to secure future supply through new projects and takeover bids, though few major acquisitions have succeeded so far.
Both Anglo and Teck have undergone major restructuring in recent years amid takeover attempts and strategic shifts. Anglo previously rejected a 53 billion dollar takeover offer from rival BHP, while Teck turned down Glencore’s 22.5 billion dollar bid in 2023, later selling its steelmaking coal business to Glencore for 6.93 billion dollars.
“This deal is in itself a very strong defense,” a source familiar with the negotiations said, noting that the transaction is an all-share structure with no takeover premium.
That lack of premium could open the door for rival bids, though Anglo shareholders will receive a 4.5 billion dollar special dividend. Analysts at Berenberg wrote that “the risk of interlopers will be a key question for the market,” pointing to Glencore and BHP as possible challengers.
If Anglo or Teck consider other takeover offers, a 330 million dollar break fee would apply.
