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 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.

Anglo American has been shedding its South African assets under CEO Duncan Wanblad, with the company finalising its exit from Anglo American Platinum this year. “On every metric, this is not a merger of equals since Anglo is much larger than Teck - even after the new company has disposed many of the former Anglo’s assets that accounted for half of its 2024 revenues and almost quarter of its earnings before interest, tax, depreciation and amortisation (Ebitda),’ said Gqubule.

However, other economists see the deal as a windfall for South African shareholders.