This isn't a done deal yet as rivals may smell blood

Anglo American, of the FTSE 100 index, and the Canadian group Teck Resources would like you to think of their proposed $53bn (£39bn) deal as "a true merger of equals", which it clearly isn't because the UK-listed company is about twice the size of its rival.

- Nils Pratley

Anglo American, of the FTSE 100 index, and the Canadian group Teck Resources would like you to think of their proposed $53bn (£39bn) deal as "a true merger of equals", which it clearly isn't because the UK-listed company is about twice the size of its rival. Anglo's shareholders, even after they've been paid $4.5bn through a special dividend to even up the ratios a bit, will still emerge with 62.4% of the new company.

But it is a merger in the sense that Anglo isn't paying a meaningful takeover premium to get the deal done - just a token one of 2%. That looks a smart piece of deal-making on the part of its chief executive, Duncan Wanblad.