Anglo American said on Tuesday it has agreed to merge with Teck Resources, in which the London-listed miner will own about 62.4% and the Canadian miner will hold 37.6% of the newly combined company, Anglo Teck.
Anglo Teck will be headquartered in Canada but have a primary listing in London, it said.
The merger is expected to generate annual cost savings and efficiency gains of $800 million by the fourth year after completion, Anglo said. The combined market capitalisation of both companies exceeds $53 billion.
Anglo’s chief executive, Duncan Wanblad, will remain CEO, while Teck’s Jonathan Price will serve as deputy CEO.
The two companies operate adjacent copper mines in Chile – Quebrada Blanca and Collahuasi – which are expected to deliver further operational benefits.
Both Anglo and Teck have been at the centre of takeover interest in recent years, with Glencore pursuing Teck and BHP targeting Anglo for their extensive copper portfolios.
Copper demand is forecast to rise sharply, driven by the electric vehicle boom and emerging uses such as AI-powered data centres.
(Reporting by Clara Denina, Prerna Bedi and Yadarisa Shabong)
