London-listed Anglo American is to merge with Canada’s Teck Resources in a deal that creates a copper-focused mining giant worth more than $50 billion.
The focus is also on the retail sector after Dunelm reported robust annual results and the British Retail Consortium highlighted decent trading in August.
However, the industry body is worried that the later-than-expected Budget could impact consumer confidence in the run up to Black Friday.
FTSE 100 Live Tuesday
- Anglo American agrees merger
- Dunelm posts higher profit
- Mobico plans UK coach tie-up
Market update: FTSE 100 higher on mining merger, Dunelm shares fall
10:13 , Graeme EvansLondon’s status as home to the world’s biggest mining companies was today boosted by a $50 billion merger involving Anglo American and Canada’s Teck Resources.
The proposed tie-up, which lifted Anglo’s FTSE 100–listed shares by 8%, creates a top five copper producer headquartered in Vancouver.
The portfolio also includes premium iron ore and zinc, while the parties plan to support Anglo’s Woodsmith polyhalite fertiliser project on the North York Moors.
Anglo Teck will have its primary stock market listing in London, with secondary dealings in Johannesburg, Toronto and New York.
The deal is expected to complete in the next 12-18 months, although the City will be on standby for competing bids as Glencore has previously shown interest in Teck Resources and BHP in Anglo American.
Victoria Scholar, head of investment at Interactive Investor, said the new company was well placed for the projected boom in copper caused by the rise in AI and electric vehicle spending.
She added: “Today’s announcement is a vote of confidence in the London market, proving that it remains an attractive listing location for stock market heavyweights.
“The FTSE 100 is best known for hosting companies within older industries like mining and banking rather than high-growth tech stocks which typically prefer the US.”
Anglo American shares rose 181p to 2464p, while the mining consolidation activity helped Glencore improve 10.05p to 296.55p and copper-focused Antofagasta to lift 37p to 2189p.
The FTSE 100 index posted a better-than-expected rise of 0.2% or 17.46 points to 9238.90, with Endeavour Mining up another 64p to 2838p following the latest gold price record above $3650 an ounce
Other risers included the warehousing and industrial property owner Segro, up 13p to 635.8p after Goldman Sachs upgraded to a Buy stance with 730p target price.
Marks & Spencer also lifted 5.3p to 357.4p and NatWest rose by 5.6p to 517.6p.
Rolls-Royce shed 1% or 11p to 1081.5p, while the poor week for Diageo shares continued with a retreat of 15p to 1944.5p.
In the FTSE 250 index, homewares chain Dunelm fell 7% despite reporting results in line with recently upgraded guidance.
Sales of £1.77 billion were 3.8% higher than a year earlier while pre-tax profits lifted 2.7% to £211 million as the business absorbed inflationary headwinds.
Gamma Communications rose 68p to 1132p and Computacenter rallied 76p to 2402p following the release of half-year results.
In the FTSE All-Share, National Express owner Mobico lost a fifth of its value after an adjusted half-year profit of £19.8 million fell from £28.8 million the year before. The shares lost 6.7p to 25.6p, leaving them 65% lower this year.
Mobico plans UK coach and ALSA tie-up
09:02 , Graeme EvansNational Express owner Mobico today announced plans for a “pan-European coach powerhouse” by integrating its UK coach operation into Spanish division ALSA.
Mobico said: “It is expected that this transfer will lead to operational synergies through sharing of best-practice, and further cost efficiencies.”
The switch, which is expected to take place in January, is part of strategic changes announced alongside weaker half-year results.
Shares fell another 20% as Mobico announced an adjusted pre-tax profit of £19.8 million, down from £28.8 million the year before.
The company said the UK coach operation faced increased competition, whereas ALSA continued to show strong performance amid double-digit revenues growth.
Executive chair Phil White said the group planned to take “decisive action to sharpen our operational and financial performance”.
This included additional cost reduction plans and further leveraging ALSA's best practice across the business.
He added: "Mobico has delivered a solid performance in the first half of 2025, with revenue growth supported by continuing positive passenger demand, further contract win momentum and another record performance at ALSA.”
Anglo American shares up 5%, FTSE 100 higher
08:26 , Graeme EvansAnglo American shares today rose 5% - up 124.5p to 2407.5p - following the announcement of the company’s merger deal with Canada’s Teck Resources.
The consolidation in the mining sector also helped copper-focused Antofagasta to advance 2% or 48.9p to 2200.9p, while Glencore put on 2% or 6.2p to 292.7p.
The FTSE 100 index is up by a better-than-expected 0.2% or 18.69 points to 9240.13, with Endeavour Mining up another 30p to 2804p following the latest gold price record.
Other risers included NatWest and Berkeley after gains of about 1%. Warehousing and industrial property owner Segro rose 13p to 635.8p after Goldman Sachs lifted the stock to a Buy recommendation with a 730p target price.
Rolls-Royce, BAE Systems and Babcock International surrendered recent gains at the bottom of the FTSE 100. Rolls shed 1.5% or 16p to 1076.5p.
Dunelm posts higher profit, yet to see consumer recovery
07:45 , Graeme EvansHomewares retailer Dunelm today said it absorbed inflationary headwinds to lift pre-tax profits by 2.7% to £211 million in the year to 28 June.
Sales of £1.77 billion were 3.8% higher than a year ago, with digital now representing 40% of the total.
The chain, which has 202 stores in the UK and Ireland, said it was pleased with trading in the new financial year but that it has yet to see signs of a sustained consumer recovery.
Presenting results for the final time, chief executive Nick Wilkinson said the company has learned how to navigate a volatile consumer environment.
He added: “With a thriving digital offer, vibrant stores, and a broadening category offer, we're finding new and meaningful ways to be relevant in our customers' lives.”
A final dividend of 28p pence lifts the total for the year by 2.3% to 44.5p. A special dividend of 35p was also paid in April.
Retail sales higher, BRC flags Black Friday worries
07:30 , Graeme EvansRetail sales in August rose by 3.1% amid the benefit of sunny weather and the latest interest rate cut, the British Retail Consortium (BRC) said today.
BRC chief executive Helen Dickinson said: “Despite a better summer, retailers approach the ‘golden quarter’ with caution.
“With the later-than-expected Budget falling just days before Black Friday, many are uneasy about how consumer confidence and spending could be impacted by tax rise speculation in the run-up to Christmas.”
Mining giants agree merger deal
07:10 , Graeme EvansAnglo American and Canada’s Teck Resources today announced they have reached agreement on a “merger of equals”.
Anglo Teck group will be a top five global copper producer, headquartered in Vancouver with its main stock market listing in London. The wider portfolio includes premium iron ore, zinc and crop nutrients.
The companies pledged to continue to progress the development of the Woodsmith polyhalite fertiliser project on the North York Moors, highlighting its ongoing potential to be a generational asset in crop nutrients.
A special dividend of $4.5 billion or $4.19 a share will be paid to Anglo American shareholders ahead of completion of the deal.
The tie-up creates a business worth more than $50 billion, while the combination has the potential to deliver $800 million of annual synergies. Subject to regulatory and other approvals, the deal is seen completing in 12-18 months.
Gold price momentum continues, FTSE 100 seen lower
07:01 , Graeme EvansThe tech-heavy Nasdaq Composite last night set a fresh record high after improving 0.5% in a strong Wall Street session.
US interest rate cut optimism also helped the Dow Jones Industrial Average to rise by 0.3% and the S&P 500 index by 0.2%.
In Asia, the Nikkei 225 topped 44,000 for the first time earlier today but has since fallen back into negative territory.
The FTSE 100 index, which made steady progress on Monday with a rise of 13.23 points to 9221.14, is forecast to start today’s session about 0.1% lower.
The gold price is up 0.5% at a fresh record high above $3650 an ounce, supported by expectations of further Federal Reserve interest rate cuts.
