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Anglo American PLC and Teck Resources Ltd on Tuesday announced they have signed an agreement to combine their respective businesses in what they bill as a ‘merger of equals’. The two companies said in a statement on Tuesday the merger entity called Anglo Teck PLC, to be headquartered in Canada, will likely offer investors more than 70% exposure to copper. Diversified assets will also include iron ore and zinc. Anglo American shareholders will own 62.4% and Teck shareholders to hold 37.6% of Anglo Teck PLC, immediately after completion of the merger. As part of the deal, Anglo American will declare a special dividend of $4.5 billion or $4.19 per share to be paid to its shareholders before completion of the deal. The deal is subject to regulatory approvals and is expected to complete in 12-18 months. Boards of Anglo American and Teck unanimously support and recommend the transaction, the group said. As part of its simplification plan, Anglo American focuses on iron ore and copper, while getting rid of platinum, coal, nickel and diamond assets. In July last year, Teck sold its steelmaking coal business to Glencore PLC. Anglo Teck will have a primary listing on the London Stock Exchange. It will also be listed on the Johannesburg Stock Exchange, the Toronto Stock Exchange and the New York Stock Exchange. Anglo Teck will have its global headquarters in Vancouver, Canada, where the chief executive officer, deputy CEO, and chief financial officer and a significant majority of the senior executive team will be based. Anglo Teck will retain corporate offices in London and Johannesburg. Anglo American and Teck expect $800 million in pre-tax recurring annual synergies from the combination of both companies. Additional $1.4 billion annual average underlying earnings before interest, taxes, depreciation and amortisation uplift expected from synergies between the adjacent Collahuasi and Quebrada Blanca operations from 2030-2049, which is expected to result in an increase of 175,000 tonnes of potential additional annual copper production. ‘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 Chief Executive Officer Duncan Wanblad said. ‘This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada a top five global copper producer with exceptional mining and processing assets located across Canada, the US, Latin America, and Southern Africa,’ Teck CEO Jonathan Price said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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