Anglo American plc (“Anglo American”) and Teck Resources Limited (“Teck”) announced a merger to form the Anglo Teck group (“Anglo Teck”), a global critical minerals company, headquartered in Canada.
The company is now in the top five of global copper producers, with six world-class copper assets, high-quality premium iron ore and zinc businesses.
The Merger is expected to deliver annual pre-tax synergies of approximately US$800 million by the end of the fourth year following completion of the transaction. The company (AngloTeck) will also work with key stakeholders and partners in Collahuasi and Quebrada Blanca, to optimise assets to an estimated US$1.4 billion (100% basis) from 2030-2049, primarily through operational integration and optimisation of Collahuasi and Quebrada Blanca.
Duncan Wanblad, Chief Executive Officer of Anglo American, said “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. Having made such significant progress with Anglo American’s portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth. We have a unique opportunity to bring together two highly regarded mining companies whose portfolios and capabilities are deeply complementary, while also sharing a common set of values. We are all committed to preserving and building on the proud heritage of both companies, both in Canada, as Anglo Teck’s natural headquarters, and in South Africa where our commitment to investment and national priorities endure. Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.”
Anglo American is expected to issue 1.3301 ordinary shares to the existing Teck shareholders in exchange for each outstanding Teck class A common share and class B subordinate voting share, consistent with a merger of equals at market.