Anglo American Nears $17B Acquisition Deal with Teck Resources

Anglo American and Teck Resources are in advanced negotiations to merge, potentially creating the world's fourth-largest copper producer. The deal, expected to be announced imminently, would be an all-share transaction with Anglo owning 60% and Teck 40% of the combined entity, named Anglo Teck, headquartered operationally in Vancouver. This merger aims to capitalize on synergies, especially by combining Teck's Quebrada Blanca 2 copper mine with Anglo's nearby Collahuasi mine in Chile, enhancing operational efficiency amid cost overruns at Teck's mine. The transaction, valued at around $17 billion, reflects a strategic focus on copper, a critical metal for the global energy transition. Both companies have recently streamlined their portfolios, and this deal marks a significant consolidation in the mining sector following several failed attempts at large mergers. Anglo's CEO Duncan Wanblad will serve as CEO of the merged company, with Teck's CEO Jonathan Price as deputy CEO.