Anglo American PLC from Britain and Teck Resources Ltd. of Canada have gone ahead and announced on September 09, 2025, that they are going to merge in a $52 billion all-share deal, thereby creating a copper-mining stalwart at the center of the worldwide push when it comes to green energy.
It is well to be noted that this Anglo American Teck Mining merger happens to come just months after both the firms moved away from takeover attempts by their heavyweight rivals. This deal, which is regarded as the merger of equals, will have Anglo hold 62.4% of the combined group and Teck 37.6%.
The primary place of listing happens to be London
Notably, the enlarged company is going to be headquartered in Canada; however, it will keep its primary listing in London, which happens to be a symbolic lifeline to the UK market, wherein Anglo happens to be an FTSE 100 member. Interestingly, the shares are also going to be traded across Johannesburg and Toronto as well as New York.
The investors have gone on to cheer the Anglo American and Teck Mining merger, with Anglo American’s stocks surging almost 9% in London trading. Analysts have gone ahead and called the decision a very robust endorsement of the role of London in hosting international mining giants.
What are the terms of this mega-deal?
It is worth noting that the Anglo American and Teck Mining merger is going to be executed as per the Canada Business Corporations Act. Anglo is going to issue 1.3301 new shares for every 1 Teck share. Anglo also looks forward to issuing a $4.5 billion special dividend for its shareholders before the merger is done.
However, there are multiple approvals which are needed for the agreement to take shape-
- More than half of the shareholders from Anglo
- A minimum of 66.6% of Teck’s shareholders
- Approval by the court in Canada
- Clearance as per the Investment Canada Act as well as other regulators
The fact is that if the deal goes through, there would be a $300 million break fee, which will be levied. Both the companies expect that the merger is going to most likely close in 18 months.
Financial as well as strategic muscle
The new Anglo Teck Group is going to save almost $800 million per year by year four after the merger, said the companies. Apart from cost-cutting, the combined copper mines, specifically the ones that are located in the copper belt of Chile, will go on to position the group as a heavyweight supplier when it comes to critical minerals as far as electric vehicles, renewable grids, and green infrastructure are concerned.
The CEO of Anglo American, Duncan Wanblad, will be the chief executive of the combined entity, whereas Jonathan Price from Teck is going to serve as the deputy CEO.
Right from being Targets to Titans
The spike in copper has apparently made both Anglo as well as Teck magnets for takeover bids. Notably, Anglo went on to rebuff a £34 billion offer which came from BHP Group and chose to rather restructure around copper, fertilizers, and premium iron ore. Teck, on the other hand, fended off Glencore PLC in 2023, thereby forcing the Swiss giant to go ahead and rather settle for its coal assets.
AJ Bell’s Russ Mould says that Anglo American has indeed become a predator to prey. This goes on to send a message to the mining peers that it is surely not a pushover.
Legal as well as financial architects
It is well to be noted that both their legal heavyweights happen to be as global as the miners –
- Anglo American happens to be advised by Latham & Watkins LLP, Canada’s Torys LLP, and Webber Wentzel from South Africa.
- Teck is guided by Wachtell Lipton Rosen & Katz, Freshfields LLP, and Stikeman Elliott LLP, with Felesky Flynn LLP being the tax counsel.
Their financial advisers are the likes of Morgan Stanley, Centerview Partners, and Goldman Sachs, as well as RBC Capital Markets for Anglo.