Anglo American and Teck to unite as Anglo Teck—will this $53bn copper merger reshape mining?

Why are Anglo American and Teck Resources merging—and how will this change copper supply?

Anglo American plc and Teck Resources Limited have entered into a transformative $53 billion all-stock merger to create Anglo Teck, a global critical minerals champion that will become one of the world’s top five copper producers. The new company, which will be headquartered in Vancouver, Canada, aims to deliver more than 70 percent copper exposure to investors, positioning itself at the heart of the energy transition.

This “merger of equals” is not driven by premium bidding or takeover hostilities, but by strategic alignment across asset portfolios, capital markets positioning, and long-term demand for copper. With electrification, renewable energy, electric vehicles, and AI infrastructure all increasing global copper demand, Anglo Teck is being positioned as a copper-dominant powerhouse at precisely the moment the world anticipates a supply gap.

The merger also follows a period of portfolio simplification by both companies. Anglo American has been offloading its platinum and coal businesses, as well as moving toward a separation of its diamond division, De Beers. Teck, on its part, had already spun off its steelmaking coal operations. That makes both companies leaner and better aligned for a copper-led growth cycle.

How is the Anglo Teck deal structured and what does it mean for shareholders?

Anglo American shareholders will own approximately 62.4 percent of the new entity, while Teck shareholders will hold 37.6 percent. The exchange ratio is set at 1.3301 Anglo Teck shares for each Teck share, and the structure offers no takeover premium. However, to compensate for that and rebalance the ownership, Anglo American will issue a $4.5 billion special dividend—equivalent to approximately $4.19 per share—prior to closing.

The financial rationale rests heavily on synergy realization. The merged group expects to achieve $800 million in annual cost synergies by the end of year four, with 80 percent of those expected to be realized by the end of year two. In addition, the companies estimate $1.4 billion in average annual EBITDA uplift between 2030 and 2049, primarily by optimizing operations across the Collahuasi and Quebrada Blanca copper mines in Chile, which are adjacent.

These synergies come not just from operational integration, but from commercial alignment and infrastructure sharing. For example, higher-grade ore from Collahuasi could be processed using Quebrada Blanca’s concentrator, optimizing throughput and boosting margins in capital-efficient ways.

Who will lead Anglo Teck and where will it operate?

Anglo Teck will be headquartered in Vancouver, with major corporate offices retained in London and Johannesburg. The leadership structure is designed to reflect the merger’s “equals” nature. Duncan Wanblad will serve as Chief Executive Officer, with Teck’s Jonathan Price as Deputy CEO, and John Heasley as Chief Financial Officer. Sheila Murray, the former Chair of Teck, will serve as Chair of the Anglo Teck board.

This executive lineup ensures continuity of strategic intent while aligning with regulatory expectations, particularly under Canada’s Investment Canada Act. The global footprint of Anglo Teck will continue to include country offices and marketing hubs across North America, Latin America, southern Africa, and Europe.

What copper and critical minerals assets will drive growth for Anglo Teck?

The merged company will control a globally unmatched copper portfolio with six core producing mines: Collahuasi, Quebrada Blanca, Quellaveco, Los Bronces, Highland Valley Copper, and Antamina. Together, these mines are expected to produce approximately 1.2 million tonnes of copper annually, with growth targeted to reach 1.35 million tonnes by 2027.

In addition to copper, Anglo Teck will maintain significant high-margin positions in premium iron ore, primarily through Kumba Iron Ore in South Africa and the Minas-Rio system in Brazil. It will also own zinc assets such as the Red Dog mine in Alaska and the Trail Operations smelting complex in British Columbia, which also produces germanium and other strategic byproducts.

Anglo Teck plans to retain development optionality in crop nutrients through the Woodsmith project in the United Kingdom, while remaining open to syndicating this asset depending on market conditions and partner interest.

How is the market reacting and what does early investor sentiment reveal?

Investor reaction to the merger was overwhelmingly positive. Anglo American shares jumped over 10 percent in London trading following the announcement, while Teck stock rose more than 11 percent on the TSX and NYSE. Analysts have issued bullish notes, praising the structure of the deal, the long-term copper exposure, and the avoidance of overleveraging.

Institutional sentiment has centered around three themes. First, the merger clearly repositions Anglo American from a potential takeover target—as it was when Glencore made its advances in 2023—into a consolidator. Second, Teck gains an exit for its restructured, coal-free portfolio without needing to engage in prolonged M&A warfare. Third, investors are excited about the potential for Anglo Teck to spin off its iron ore or zinc operations in the future, further sharpening its identity as a copper pure-play.

Some analysts are speculating that such a move could improve Anglo Teck’s valuation multiple relative to Rio Tinto or BHP, especially if copper scarcity intensifies by the end of the decade.

What long-term development projects are on the table post-merger?

Anglo Teck’s growth pipeline is among the deepest in the industry. In Chile, Peru, Mexico, and Canada, the company holds several brownfield and greenfield assets that could drive copper production beyond 1.5 million tonnes by the 2030s. Among the most closely watched projects are NuevaUnión in Chile, Zafranal in Peru, San Nicolas in Mexico, Schaft Creek and Galore Creek in British Columbia, and the NewRange JV in the U.S.

In Finland, the Sakatti project offers polymetallic potential with strategic value in Europe’s energy transition. The company also plans to continue joint planning efforts with Chile’s Codelco to coordinate activities across the Los Bronces and Andina properties, unlocking up to 2.7 million tonnes of cumulative copper production through integrated mine planning after 2030.

Exploration budgets are expected to remain robust. Anglo Teck has committed to investing at least CAD 300 million over the next five years in critical mineral exploration and innovation within Canada alone. This includes support for junior mining partnerships, data-driven mineral targeting, and AI-assisted discovery platforms.

How are national interests being safeguarded under the Anglo Teck deal?

To satisfy Canadian authorities and protect domestic economic interests, Anglo Teck has agreed to a series of binding undertakings. These include investing CAD 4.5 billion in Canadian operations over five years, maintaining current employment levels with no net job losses, and ensuring that the majority of the executive team resides in Canada.

The new company will also support Canadian processing capacity expansion, particularly at Trail Operations, and explore the creation of new refining infrastructure. Exchangeable shares will be offered to eligible Canadian investors to preserve local capital markets presence and ensure TSX listing continuity.

In South Africa, Anglo Teck will honor all Black Economic Empowerment requirements and community agreements. The company will also contribute to the Junior Mining Exploration Fund alongside the Industrial Development Corporation and the Department of Mineral and Petroleum Resources, supporting the growth of small-scale mining across the region.

What are the regulatory hurdles and deal timeline for the Anglo Teck merger?

The merger is structured as a plan of arrangement under the Canada Business Corporations Act. To move forward, the transaction requires approval from 66.7 percent of Teck’s Class A and Class B shareholders, voting as separate classes. It also requires more than 50 percent approval from Anglo American’s shareholders, along with customary court, competition, and investment authority approvals in Canada and abroad.

Voting agreements covering approximately 80 percent of Teck’s Class A shares have already been secured, with commitments from entities such as Temagami Mining, SMM Resources, and insiders including Norman Keevil. This provides strong momentum heading into the shareholder meetings.

The companies expect the merger to close within 12 to 18 months, assuming no material delays in regulatory or competition clearance.

How might Anglo Teck change the long-term structure of the global mining sector?

The Anglo Teck merger reflects a decisive shift in how mining majors are responding to the critical minerals imperative. Rather than pursuing unrelated diversification or overly leveraged expansions, this deal embraces structural simplicity, copper concentration, and regional stakeholder alignment.

With diversified miners like Rio Tinto and BHP still tethered to bulk commodities and fossil-era assets, Anglo Teck may emerge as a rare example of a future-facing, copper-centric mining major with the flexibility to respond to new demand curves—from EV supply chains to AI data centers.

If copper enters a true supercycle, and infrastructure, energy, and defense sectors escalate their demand, Anglo Teck may not just be another mining giant—it could be the blueprint for the next generation of critical minerals leadership.