Anglo American, Teck Resources to merge in 2nd largest mining deal

LONDON London-listed miner Anglo American and Canada's Teck Resources plan to merge, the two companies said on Tuesday, marking the sector's secondbiggest M&A deal ever and forging a new global copper-focused heavyweight.

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Under the proposed deal, which will require regulatory approvals, Anglo American shareholders would own 62.4% of new company Anglo Teck, while shareholders in Teck would hold 37.6%.

Anglo Teck will be headquartered in Canada but have a primary stock listing in London, said the two companies, whose combined market capitalization exceeds $53 billion.

The deal to form the world's fifth-largest copper company is also a big bet on copper by Anglo. Glencore's $90-billion merger with Xstrata in 2013 remains the largest mining deal in history.

Copper, used in the power and construction sectors, is set to benefit from burgeoning demand spurred by electric vehicles and artificial intelligence.

Miners have raced to develop new projects and there have been a flurry of takeover bids, though no major acquisition has so far succeeded.

Both Anglo and Teck have undergone significant restructuring in recent years, driven by external takeover attempts and strategic shifts within the mining industry.

On the potential of a bidding war for this deal, Teck Chief Executive Officer (CEO) Jonathan Price told Reuters that outcome was out of the company's control.

Anglo faced a £39-billion ($53-billion) takeover bid from BHP last year that was ultimately rejected by its board. Teck rejected a $22.5-billion takeover offer from Glencore in 2023, though it sold its steelmaking coal business to Glencore for $6.93 billion.