Deal Overview

Anglo American plc and Teck Resources Limited announced on September 9, 2025 that they have reached an agreement to combine through an all-stock merger of equals. The combined entity, to be named Anglo Teck, will be headquartered in Vancouver and hold a primary listing on the London Stock Exchange.

The transaction is structured as a plan of arrangement under Canadian law for Teck shareholders, alongside a court-sanctioned scheme of arrangement under English law for Anglo American shareholders. Anglo American will issue 1.3301 new shares for every outstanding Teck Class A or Class B share.

Speaking from Vancouver on the joint announcement call, Anglo American CEO Duncan Wanblad described the deal’s scale and ambition:

“This is a merger of equals between Anglo American and Teck Resources, two of the world’s leading diversified mining companies. The transaction will create the world’s premier diversified miner. The combined company will have pro forma revenues of $47 billion based on current commodity prices.”

— Duncan Wanblad, CEO, Anglo American

Teck CEO Jonathan Price underscored the strategic fit from his company’s perspective:

“This is a merger of equals that will create one of the world’s largest diversified mining companies. This transaction will allow us to realize significant value creation for our shareholders, and importantly, will provide access to a combined company with a materially larger scale and platform.”

— Jonathan Price, CEO, Teck Resources

Transaction Terms

The transaction is structured as an at-market merger of equals with no cash consideration changing hands between the two companies. Instead, Anglo American will issue new shares to Teck shareholders and separately distribute a US$4.5 billion special dividend to its own shareholders prior to closing.

The transaction does not require a financing condition and will be funded through the combined companies’ existing cash, proceeds from approximately US$5 billion in planned asset divestitures, and approximately US$7.3 billion from the previously announced sale of Teck’s steelmaking coal assets to Glencore.

Voting thresholds require approval from 66⅔% of Teck Class A and Class B shareholders, voting as separate classes, and a majority of Anglo American shareholders for the share issuance. Voting agreements covering 79.7% of Teck Class A shares are already in place committing those holders to vote in favour.

Strategic Rationale

The merger is positioned as a direct response to the structural shift in commodity demand driven by global electrification and decarbonization. Electric vehicles are expected to account for approximately 60% of new car sales by 2030, while grid modernization requires roughly three times more copper than conventional infrastructure.

Anglo Teck would rank as a top five global copper producer by attributable output — forming a portfolio Wanblad described as uniquely positioned for the energy transition:

“The combination will also result in a highly competitive portfolio of assets. We will own the world’s leading copper, nickel, coal and iron ore operations. The combination will also drive innovation and efficiency gains. The two companies have different mining methodologies, and by combining these, we can realize an operational upside for both sets of operations.”

— Duncan Wanblad, CEO, Anglo American

The combined company’s expected 2027 production mix reflects a deliberately copper-focused identity — with more than 70% exposure to copper on a copper-equivalent basis — alongside meaningful diversification into premium iron ore and zinc. Anglo Teck’s copper portfolio would span six world-class assets across Chile, Peru, Canada, and the Democratic Republic of the Congo.

Wanblad also addressed the significance of scale in closing comments on the analyst call:

“This is a truly transformational transaction that will create the world’s premier diversified miner, and will deliver significant value to all stakeholders. The combined company will be positioned to lead the global mining industry and to be a key enabler of the energy transition and decarbonization agenda.”

— Duncan Wanblad, CEO, Anglo American

Synergies

The combined company targets US$800 million in pre-tax recurring annual synergies from the broader combination, expected to be fully delivered by the end of the fourth year following completion, with approximately 80% expected to be realized on a run-rate basis by the end of the second year. One-off realization costs are estimated at approximately US$700 million over the first three years.

The synergy breakdown from the investor presentation and analyst call includes roughly US$490 million from procurement optimization, US$210 million from corporate overhead reduction, and US$100 million from marketing revenue improvements. Approximately 60% of total synergies are combination-driven, with the remaining 40% representing standalone improvements at each company.

Beyond the headline figure, the most significant value driver is the adjacency between Teck’s Quebrada Blanca and Anglo American’s Collahuasi operations in northern Chile. Combining these neighboring assets is expected to generate an average US$1.4 billion annual underlying EBITDA uplift on a 100% basis from 2030 to 2049, representing approximately 175,000 tonnes of additional annual copper production.

Combined Copper Portfolio

Anglo Teck’s copper production is expected to reach approximately 1.35 million tonnes by 2027, representing approximately 10% capital-efficient growth from the combined 2024 base. The six cornerstone copper assets span multiple generations and geographies:

Near-term organic growth is expected from debottlenecking at Quebrada Blanca (targeting throughput of 165–180 ktpd), Collahuasi (210 ktpd), and Quellaveco (142 ktpd), as well as a Los Bronces plant restart. Longer-dated optionality includes the Galore Creek and Schaft Creek projects in northwestern British Columbia, and the NuevaUnión project in Chile.

When asked about copper market dynamics on the analyst call, Wanblad expressed a constructive long-term view:

“Our view is that copper markets are likely to remain balanced to slightly long out to 2030, and potentially into 2035, given the capital intensity and the long-lead times for bringing new copper mines into production. With our world-class team and our diverse copper portfolio, we will be in a better position to innovate and implement best practices across our operations.”

— Duncan Wanblad, CEO, Anglo American

Governance & Listing

Anglo Teck will be headquartered in Vancouver, reflecting a commitment to both companies’ Canadian and South African heritage. The combined company will seek FTSE 100 inclusion and membership in major global indices including MSCI and S&P.

Duncan Wanblad (CEO of Anglo American) will serve as CEO of the combined entity. Jonathan Price (Teck CEO) will become Deputy CEO. John Heasley, currently Teck’s CFO, will serve as CFO of Anglo Teck. The board will comprise equal representation from both companies, with Sheila Murray as Chair.

The combined company plans to invest at least C$4.5 billion in Canada over the first five years and maintain Anglo American’s commitment to advancing the Woodsmith crop nutrients project in the UK. Listings are planned on the LSE (primary), JSE, TSX, and NYSE (as American Depositary Receipts), subject to exchange approvals.

Wanblad closed the call by framing the opportunity for shareholders:

“Both companies acknowledge that each operation currently is trading below its intrinsic value. This merger of equals creates a superb opportunity to realize those synergies. The combined company will generate roughly $12 billion in free cash flow based on current commodity prices.”

— Duncan Wanblad, CEO, Anglo American