Economists split over Anglo Teck tie-up as questions mount about South Africa's role

ECONOMISTS remain divided over Anglo American's proposed tie-up with Canada's Teck Resources, with some arguing that the transaction will unlock significant value for South African shareholders while others warn it signals the final unravelling of the miner's South African legacy.

- TAWANDA KAROMBO

THIS comes as shareholders are expected to vote in favour of the deal, touted by Anglo American as a merger of equals. The two resource giants also expect the deal to yield $800 million in pre-tax recurring annual synergies. I SUPPLIED

(I SUPPLIED)

This comes as shareholders are expected to vote in favour of the deal, touted by Anglo American as a merger of equals. The two resource giants also expect the deal to yield $800 million in pretax recurring annual synergies.

However, South African economist Duma Gqubule, this week said the tie-up is not a merger of equals.

In a report he compiled on the meger, Gqubule said the transaction will “provide a final death knell” for the Johannesburg and London-listed resource giant.