Anglo Teck merger aims to establish top-five copper producer and minerals leader

Core Viewpoint - Anglo American plc and Teck Resources Limited are proposing a merger of equals to create "Anglo Teck," aimed at becoming a leading global critical minerals champion and a top-five global copper producer by 2027 [1] Group 1: Merger Details - The merger will result in Anglo Teck having over 70% exposure to copper, with projected annual copper production of approximately 1.2 million tonnes and premium iron ore production of 61 million tonnes by 2024 [2] - Anglo American shareholders will own approximately 62.4% of Anglo Teck, while Teck shareholders will own about 37.6% [3] - A special dividend of US$4.5 billion, approximately US$4.19 per share, is planned for shareholders ahead of the merger completion [3] Group 2: Value Creation and Synergies - The merger is expected to generate annual pre-tax recurring synergies of approximately US$800 million by the end of the fourth year, driven by economies of scale and operational efficiencies [4] - Long-term operational synergies from integrating operations in Chile are projected to deliver US$1.4 billion in underlying EBITDA revenue synergies annually from 2030 to 2049 [4] Group 3: Corporate Structure and Leadership - Anglo Teck's global headquarters will be in Vancouver, Canada, with corporate offices in London and Johannesburg, and a majority of the senior executive team based in Canada [5] - Leadership will include Duncan Wanblad as CEO, Jonathan Price as Deputy CEO, and John Heasley as CFO [5] Group 4: Commitment to Regions - Anglo Teck has committed to compliance with empowerment and mining license requirements in South Africa, along with financial contributions to the Junior Mining Exploration Fund [6] - In Canada, the company plans to invest at least CAD$4.5 billion over five years, including up to CAD$2.4 billion for the Highland Valley Copper Mine Life Extension Project [6] Group 5: Shareholder Approval - The merger requires shareholder approval at a General Meeting scheduled for 9 December 2025, with resolutions including the allotment of new shares and a legal name change to "Anglo Teck plc" [7]