Anglo American and Teck: Forming a Global Minerals Giant

Anglo American plc and Teck Resources Limited have reached an agreement to merge, forming the Anglo Teck group. 

The merger will result in the creation of a global critical minerals powerhouse and top five global copper producer. 

Utilising the resources from both well-established companies, Anglo Teck is sure to grow its global presence. 

Combining mining resources

Anglo American is a British multinational mining company and the world's largest producer of platinum. It is also a major producer of diamonds, copper, nickel, iron ore, polyhalite and steelmaking coal. 

Its portfolio of products prove vital to modern living, with a dedication to providing sustainable metals and minerals.

Anglo American's merger with the Canadian mining company Teck is focused on responsibly providing metals which help with energy transition and global development. The newly-formed entity will t will be headquartered in Canada with strong leadership also in the UK and South Africa.

With both companies focused on global responsibility, Anglo Teck will demonstrate its strength in sustainability and operational efficiency in order to deliver significant growth throughout the merger. 

Combining a wealth of resources, Anglo Teck will be a top-five global copper producer, offering investors more than 70% exposure to copper. 

Through the combined strengths of both companies, it will have a portfolio of six world-class copper assets, with major brownfield and greenfield copper development projects.

It will also expand its product portfolio to develop growth in premium iron ore, zinc and crop nutrients sectors.

Jonathan Price, CEO at Teck, says: "This merger of two highly-complementary portfolios will create a leading global critical minerals champion headquartered in Canada – a top five global copper producer with exceptional mining and processing assets located across Canada, the United States, Latin America and Southern Africa.

"It is a natural progression of our strategy and portfolio simplification, which created a platform to enable exactly this sort of transformative transaction. Bringing together our world-class copper assets, premium iron ore and zinc operations and an outstanding pipeline of high-quality growth projects provides enormous resiliency and optionality."

A financial benefit

The merger will form a stronger, more resilient financial platform, bringing together two already well-performing companies.

In 2024, Anglo American reported an underlying EBITDA of US$8.46bn, while Teck reported adjusted EBITDA of CAD$2.93bn (US$2.12bn). This is expected to grow through the merger and combination of both companies' resources.

With a strong standing in Canada, South Africa and England, the new organisation is well-positioned to increase its presence around the world and anticipates future growth. 

The merger is expected to deliver pre-tax cost savings of approximately US$800m by the end of the fourth year. By the second year, Anglo Teck is anticipating generating 80% of the total savings each year. 

Working with its partners and stakeholders in its Chilean sites, Collahuasi and Quebrada Blanca, it will optimise its assets to realise US$1.4bn of underlying EBITDA revenue.

Jonathan continues: "This transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and all stakeholders.”

The company will have offices around the world, playing a vital role in mining in a range of countries. Through this, it is will help support critical minerals strategies in countries such as South Africa and the UK, as well as local communities and stakeholders.

“We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long," adds Duncan Wanblad, CEO at Anglo American.

"Having made such significant progress with Anglo American’s portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth."

Supply chain growth opportunities

The merger is set to create larger supply chain advancements, as the blending of resources will help process more materials.

Collahuasi (an Anglo American mine in Chile) and Quebrada Blanca (a Teck mine in Chile) have the potential to create more efficient value thanks to the merger.

Using the Teck infrastructure from QB, higher-grade ore can be extracted from Collahuasi. 

Once the merger is complete, more opportunities will be unlocked for the company, allowing it to create longstanding success through its innovative strategies. 

Duncan goes on: "We have a unique opportunity to bring together two highly-regarded mining companies whose portfolios and capabilities are deeply complementary, while also sharing a common set of values.

"We are all committed to preserving and building on the proud heritage of both companies, both in Canada, as Anglo Teck’s natural headquarters, and in South Africa where our commitment to investment and national priorities endure.

"Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals.”