Anglo American (OTC:NGLOY) and Teck Resources (NYSE:TECK) have agreed to combine forces in a $53 billion merger of equals that will create one of the world’s largest critical mineral producers. Anglo Teck, the new company, will have a headquarters in Vancouver and a primary listing in London, with additional listings in Toronto, Johannesburg, and New York.
"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," Anglo American CEO Duncan Wanblad said in a press release.
Wanblad will serve as Anglo Teck's first CEO, while Teck's CEO, Jonathan Price, will take the role of deputy chief executive.
Both companies have fended off ambitious suitors in recent years, with Anglo resisting a $49 billion bid from BHP in 2024 and Teck turning down Glencore's hostile approach in 2023 before selling its steelmaking coal business to the Swiss commodity firm for $7 billion.
Those bids prompted each management to tighten its portfolio, as Teck streamlined its focus to metals, while Anglo signaled its exit from platinum, coal, and diamonds. With this merger, they're shielding themselves from bigger rivals while presenting a strong case for national and strategic importance in Canada, as resource ownership has become a sensitive policy issue.
However, the merger attraction primarily lies in copper. With Anglo's Quellaveco mine in Peru and stakes in Los Bronces and Collahuasi in Chile, combined with Teck's flagship Quebrada Blanca 2 deposit, the new Anglo Teck becomes a top-five global copper producer with output of around 1.2 million tons a year.
The overlapping assets in northern Chile promise the most immediate synergies, with potential to streamline processing and deliver an additional 175,000 tons of copper production beginning in the next decade. In total, management forecasts $800 million in recurring annual savings within four years, alongside a further $1.4 billion a year in EBITDA uplift from the Collahuasi–Quebrada Blanca integration between 2030 and 2049.
Each company also brings depth in complementary resources. Anglo adds premium iron ore from South Africa and Brazil, plus the long‑term crop nutrient potential of its Woodsmith project in the UK. Teck contributes the Red Dog zinc mine in Alaska, one of the world's largest producers of the metal, alongside Trail's metallurgical facilities in British Columbia.
A merger could also help both companies deal with recent setbacks. Teck's QB2 project has battled years of cost inflation, tailings issues, and now a production review into 2026. Anglo, meanwhile, suffered a collapse in coal sale talks and is attempting to dispose of De Beers amid an unprecedented slump in diamond demand.
Structurally, the deal will be executed as a merger of equals, but with Anglo shareholders set to hold around 62.4 percent of the new group and Teck investors with 37.6 percent. The transaction will also come with a $4.5 billion special dividend to Anglo investors ahead of completion, smoothing the balance sheet contribution of both sides.
The boards of each company unanimously recommended the deal, which is expected to close within 12 to 18 months pending approvals under Canada's Investment Act and other global competition filings.
Read Next:
Photo courtesy: Shutterstock
