In a major shake-up of the mining world, British company Anglo American and Canadian peer Teck Resources announced plans to merge in a deal worth billions.
The timing couldn’t be more strategic, as copper demand surges globally to power cleaner energy solutions and feed the growth of artificial intelligence.
The combined entity, tentatively named Anglo Teck, would be valued at over $50 billion based on current market capitalizations, creating one of the largest players in critical minerals worldwide.
Details of the Multi-Billion-Dollar Merger
According to a joint statement, the merger is expected to finalize within 12 to 18 months, pending regulatory approvals.
Anglo American, the larger of the two firms with $27 billion in revenue in 2024, would hold 62.4 percent of the new company, leaving the remainder to Teck shareholders.
The new headquarters will be in Vancouver, with a primary listing in London.
Copper at the Heart of the Deal
Copper has emerged as a key commodity in recent years, fueling everything from solar panels and wind turbines to electric-vehicle batteries and consumer electronics.
“This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada,” said Teck CEO Jonathan Price.
He added that Anglo Teck would also operate premium iron ore, zinc, and crop nutrients businesses.
Price emphasized that the new company would rank among the top five global copper producers, with mining and processing operations spanning Canada, the United States, Latin America, and Southern Africa.
Copper’s role in military hardware, aircraft, and the AI and data center boom adds further strategic value.
Cost Savings and Workforce Implications
Anglo Teck anticipates recurring annual pre-tax cost savings of $800 million starting four years after the merger closes.
However, job cuts are expected as overlapping roles across both companies are consolidated.
“We are committed to preserving and building on the proud heritage of both companies,” said Anglo American CEO Duncan Wanblad, who will become CEO of Anglo Teck, with Price serving as deputy.
He emphasized that investments in Canada and South Africa would continue.
Market Reaction: Shares Soar
Investors responded enthusiastically to the merger announcement.
Anglo American shares jumped nearly 10 percent in London, propelling it to the top of the FTSE 100 index.
Teck shares also surged in after-hours trading, with rival miners benefiting from the excitement.
“Anglo American’s merger with Teck cements copper at the center of its portfolio,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.
“With over 70 percent exposure to copper, the combined company is positioned to benefit from the structural demand tied to electrification and energy transition.”
A Bold Strategic Move
The merger marks a striking reversal for Anglo American, which previously rejected multi-billion-dollar takeover offers, including one from Australian rival BHP and a separate failed bid for Teck from Swiss commodities giant Glencore.
“Anglo American has turned from prey to predator,” said Russ Mould, investment director at AJ Bell.
“The Teck deal signals to the mining industry that Anglo American is a major force.”
Last month, US group Peabody Energy withdrew from a $3.8-billion attempt to acquire Anglo American’s steelmaking coal business, underlining the company’s recent strategic focus.
Century-Old Legacy Meets Modern Ambition
Anglo American traces its roots back over 100 years to its founding in South Africa by German-born industrialist Ernest Oppenheimer.
The merger with Teck Resources shows how a company with deep historic roots is positioning itself to dominate the future of global mining, particularly in copper and critical minerals that are central to the energy transition.