Anglo American and Teck’s $50bn copper merger – reason behind the deal

Anglo American and Teck Resources have struck a landmark agreement to merge, forming one of the world’s most influential copper-focused mining groups. The combined enterprise, to be branded Anglo Teck, will be headquartered in Vancouver and valued at around $50 billion, with Anglo shareholders holding a 62.4% stake and Teck investors the remaining 37.6%.

The deal reflects the mining sector’s accelerating pivot towards critical minerals, particularly copper, as governments and industries prepare for surging demand linked to electrification and renewable energy. Copper, essential for power grids, electric vehicles and clean energy infrastructure, is forecast to face significant supply shortages later this decade.

Anglo American, which produced 770,000 tonnes of copper in 2024, will combine its portfolio with Teck’s rapidly expanding operations. Teck expects production of up to 525,000 tonnes in 2025 and has growth projects planned through to 2030. The two miners already share ownership of Chile’s giant Collahuasi and Quebrada Blanca complexes, which will become central pillars of the enlarged company.

The announcement follows a turbulent period for both groups. Anglo had resisted a £39bn takeover proposal from rival BHP in 2024, while Teck fended off an approach from Glencore the previous year. For Anglo’s chief executive, Duncan Wanblad, this merger represents a decisive step after streamlining the company’s portfolio and signalling possible exits from platinum, diamonds and coal. He will lead the new business, supported by Teck’s CEO Jonathan Price as deputy.

Despite its Canadian headquarters, Anglo Teck will retain its primary listing in London, with additional listings in New York, Toronto and Johannesburg. To sweeten the deal, Anglo will pay a $4.5bn special dividend to its shareholders before completion. The firms anticipate around $800m in annual pre-tax savings from operational synergies once integration is complete.

Norm Keevil, Teck’s influential controlling shareholder, has endorsed the transaction, calling it a “powerful next chapter” for the family-built company. Support from the Keevil family is viewed as crucial, given their voting control had previously blocked Glencore’s takeover attempt.

If regulatory and shareholder approvals are secured, the transaction could close within 12 to 18 months, creating a mining powerhouse expected to rank among the top five global copper producers. For the UK, however, it underscores the continuing erosion of London’s historic role as a hub for major mining headquarters, following BHP’s departure in 2022.