First Mover Advantage to Anglo, But It May Not Be The Winning Move
It has been announced that Anglo American (AAL LN / Market Cap £29bn) is combining with Teck Resources (TECK US / Market Cap $17bn) through a merger of equals to form “Anglo Teck”, a new global critical minerals champion with ~70% copper exposure. The terms of the transaction are that each Teck Class A common share and Class B subordinate voting share will be exchanged for 1.3301 ordinary shares of Anglo American. Immediately prior to completion, Anglo American intends to pay a special dividend of $4.5bn (~$4.19 per share) to its shareholders. At closing, Anglo American shareholders will own ~62.4% and Teck shareholders ~37.6% of the combined group. The deal is expected to generate outstanding value creation, with $800m in recurring annual synergies ($700m in cost synergies, and $100m in revenue synergies; 80% of which realised by year two), and an additional ~$1.4bn annual uplift expected from 2030-2049 through operational integration of Teck’s Quebrada Blanca 2 (QB 2) with Anglo’s Collahuasi mine, equivalent to ~175kt of additional copper production per annum.
Anglo American and Teck are positioning the deal as a transformational step in critical minerals, anchored by copper but underpinned by Anglo’s diversified iron ore and zinc operations and Teck’s strong franchise in Canada. Boards of both companies have unanimously recommended the merger. The combined company, to be named Anglo Teck, will become the world’s fifth-largest copper producer, anchored by six world-class copper assets in established mining regions, supported by long mine lives, proven infrastructure, and substantial growth potential. The transaction is framed around unlocking smarter optimisation of operations across the portfolio, most notably at the adjacent Quebrada Blanca and Collahuasi mines in Chile.
The transaction is expected to close within 12-18 months, subject to shareholder approval, court approval in Canada, customary competition reviews, regulatory clearances under the Investment Canada Act, and other standard closing conditions. Canadian government approval, through the Investment Canada Act, will be seen as the key one of these, given the focus on natural resources as ‘strategic assets’. Anglo and Teck have clearly given significant thought to this with the combined group intending to be headquartered in Canada, senior management to be located in Canada and significant investment commitments in-country. Management have highlighted the heritage of both companies and their leadership positions in Canada in their press release alongside their South African and UK credentials. The enlarged company will retain Anglo’s premium listing in London as well as listings in Johannesburg, Canada and the US (through ADRs). Teck’s controlling Keevil family, alongside Sumitomo and key insiders, have signed voting agreements covering roughly 80% of Teck’s Class A shares, providing strong support for the merger. A termination fee of $330m will apply if the deal is withdrawn.
In conclusion, the merger offers compelling industrial logic, underpinned by ~$800m near-term synergies and a further ~$1.4bn long-term uplift from Collahuasi-QB2 integration. The headline terms and premium look underwhelming at first sight for Teck holders, potentially leaving the door ajar for others to take a look at either Teck or indeed Anglo. Rio Tinto (RIO LN / Market Cap £80bn) and BHP (BHP LN / Market Cap £101bn) stand out as the most credible interlopers, with Glencore (GLEN LN / Market Cap £36bn), Freeport-McMoran (FCX US / Market Cap $67bn) and Barrick Mining Corporation (B US / Market Cap $50bn)also likely to take a look, although any competing bidder would of course need to factor in a $330m break fee. Whether or not a counterbid emerges, the announced 12-18 month timeline already bakes in a protracted Investment Canada review. For now, Anglo Teck looks like the frontrunner, but the contest for control of these copper assets may not be over. In this note, we try to assess the strategic rationale, the regulatory hurdles (notably Canada Investment), and the risks around timing and potential interlopers.
The deal call will be held at 8:00 AM ET / 1:00 PM BST details and access links are provided here.
Companies Overview
Anglo American
Anglo American is a diversified miner now reshaping itself around copper and premium iron ore after a year of disposals and aborted sales. In Chile, Collahuasi (44% owned by Anglo) is a tier-one, low-cost complex with plant upgrades and a new desalination stream coming through the middle of the decade. Los Bronces (50.1% owned) is being managed through lower grades and permitting cycles, with a large integrated project and desalination providing the long-term path. In Peru, Quellaveco is the newest cornerstone and reached steady-state after first production in 2022. Together these assets give Anglo scale in the Andes and a visible pipeline of brownfield options. Brazil’s Minas-Rio supplies high-grade iron ore into a market that is rewarding quality; a resource integration with Vale adds future expansion headroom as Anglo leans into premium iron ore alongside copper.
Anglo American and Teck are positioning the deal as a transformational step in critical minerals, anchored by copper but underpinned by Anglo’s diversified iron ore and zinc operations and Teck’s strong franchise in Canada. Boards of both companies have unanimously recommended the merger. The combined company, to be named Anglo Teck, will become the world’s fifth-largest copper producer, anchored by six world-class copper assets in established mining regions, supported by long mine lives, proven infrastructure, and substantial growth potential. The transaction is framed around unlocking smarter optimisation of operations across the portfolio, most notably at the adjacent Quebrada Blanca and Collahuasi mines in Chile.
The transaction is expected to close within 12-18 months, subject to shareholder approval, court approval in Canada, customary competition reviews, regulatory clearances under the Investment Canada Act, and other standard closing conditions. Canadian government approval, through the Investment Canada Act, will be seen as the key one of these, given the focus on natural resources as ‘strategic assets’. Anglo and Teck have clearly given significant thought to this with the combined group intending to be headquartered in Canada, senior management to be located in Canada and significant investment commitments in-country. Management have highlighted the heritage of both companies and their leadership positions in Canada in their press release alongside their South African and UK credentials. The enlarged company will retain Anglo’s premium listing in London as well as listings in Johannesburg, Canada and the US (through ADRs). Teck’s controlling Keevil family, alongside Sumitomo and key insiders, have signed voting agreements covering roughly 80% of Teck’s Class A shares, providing strong support for the merger. A termination fee of $330m will apply if the deal is withdrawn.
In conclusion, the merger offers compelling industrial logic, underpinned by ~$800m near-term synergies and a further ~$1.4bn long-term uplift from Collahuasi-QB2 integration. The headline terms and premium look underwhelming at first sight for Teck holders, potentially leaving the door ajar for others to take a look at either Teck or indeed Anglo. Rio Tinto (RIO LN / Market Cap £80bn) and BHP (BHP LN / Market Cap £101bn) stand out as the most credible interlopers, with Glencore (GLEN LN / Market Cap £36bn), Freeport-McMoran (FCX US / Market Cap $67bn) and Barrick Mining Corporation (B US / Market Cap $50bn)also likely to take a look, although any competing bidder would of course need to factor in a $330m break fee. Whether or not a counterbid emerges, the announced 12-18 month timeline already bakes in a protracted Investment Canada review. For now, Anglo Teck looks like the frontrunner, but the contest for control of these copper assets may not be over. In this note, we try to assess the strategic rationale, the regulatory hurdles (notably Canada Investment), and the risks around timing and potential interlopers.
The deal call will be held at 8:00 AM ET / 1:00 PM BST details and access links are provided here.
Companies Overview
Anglo American
Anglo American is a diversified miner now reshaping itself around copper and premium iron ore after a year of disposals and aborted sales. In Chile, Collahuasi (44% owned by Anglo) is a tier-one, low-cost complex with plant upgrades and a new desalination stream coming through the middle of the decade. Los Bronces (50.1% owned) is being managed through lower grades and permitting cycles, with a large integrated project and desalination providing the long-term path. In Peru, Quellaveco is the newest cornerstone and reached steady-state after first production in 2022. Together these assets give Anglo scale in the Andes and a visible pipeline of brownfield options. Brazil’s Minas-Rio supplies high-grade iron ore into a market that is rewarding quality; a resource integration with Vale adds future expansion headroom as Anglo leans into premium iron ore alongside copper.
The company has been simplifying - it demerged its South African PGM arm as Valterra Platinum in mid-2025 and, last week, sold down its remaining 19.9% stake. The planned disposal of De Beers is moving through a dual-track process despite softer diamond pricing, and the sale of the Australian steelmaking-coal portfolio to Peabody collapsed in August, with both sides heading for arbitration. These steps tighten strategic focus after BHP’s failed approach in 2024, and they concentrate capital on future-proof metals. The message from management is consistent: fewer distractions, more copper and premium iron ore.
Anglo still has options beyond copper. Minas-Rio remains a growth engine as steelmakers seek higher-grade feed to decarbonise. In Europe, Sakatti in Finland has “strategic project” status from the EU, while Woodsmith in the UK is capital-constrained but could yet progress with a partner. The combined group will inherit these options but is likely to prioritise near-term delivery from the Andean copper base and the premium-iron-ore franchise.
Teck Resources
Teck is a Vancouver-based miner that has been simplified into a copper-and-zinc story after completing the $7.3bn sale of its steelmaking-coal business to Glencore in July 2024. The portfolio now centres on a handful of large, long-life assets. In Chile, QB 2 is the flagship. The Phase 2 ramp is progressing under a formal action plan, with logistics and maintenance issues managed inside guidance; QB is set up as a multi-decade contributor once steady-state is locked in. In Canada, Highland Valley Copper is moving through a sanctioned life extension into the mid-2040s. Teck also owns 22.5% of Antamina in Peru, one of the Andes’ largest copper-zinc operations, and operates Trail in British Columbia, a large integrated zinc-lead smelter with specialty-metals output. Red Dog in Alaska remains a top-tier zinc mine with strong by-product credits.
Teck is a Vancouver-based miner that has been simplified into a copper-and-zinc story after completing the $7.3bn sale of its steelmaking-coal business to Glencore in July 2024. The portfolio now centres on a handful of large, long-life assets. In Chile, QB 2 is the flagship. The Phase 2 ramp is progressing under a formal action plan, with logistics and maintenance issues managed inside guidance; QB is set up as a multi-decade contributor once steady-state is locked in. In Canada, Highland Valley Copper is moving through a sanctioned life extension into the mid-2040s. Teck also owns 22.5% of Antamina in Peru, one of the Andes’ largest copper-zinc operations, and operates Trail in British Columbia, a large integrated zinc-lead smelter with specialty-metals output. Red Dog in Alaska remains a top-tier zinc mine with strong by-product credits.
The pipeline is Andean-weighted. Zafranal in southern Peru has its environmental approvals and is framed for a final investment decision once QB is stable. There is additional optionality in Mexico and earlier-stage prospects in Peru, which keep the queue of future copper tonnes alive without forcing near-term capex. Governance matters in any bid: Teck introduced a sunset on its dual-class structure in 2023, with the high-vote A shares converting in May 2029. That concentrated control has historically shaped the approach route for would-be buyers, but the sunset gave investors a clearer line of sight to a one-share, one-vote regime within this decade.
These features explain the persistent M&A interest. With coal carved out, Teck became an easier business to underwrite: copper-heavy, with scale in Chile and Canada, material exposure to Antamina, and a visible path to growth at QB and HVC. This morning's announcement crystallised that narrative. Nonetheless, operational delivery still matters; investors will watch QB’s ramp milestones, Red Dog’s grade sequence, Trail’s reliability, and the pace of HVC’s project spend. But the direction is set. A cleaned-up Teck, now merging with Anglo, offers concentrated copper exposure with credible growth and a simpler governance path as the 2029 sunset approaches.
Potential Counterbidders for Teck
Rio Tinto - The most obvious potential contender for Teck is Rio. Strategically it fits: Rio wants more copper and knows Canada well. Management has kept optionality on large M&A, with Jakob Stausholm saying in 2024 that Rio “may consider a large acquisition” but only if the value is compelling in what he called a “hot” copper market. Board-level signalling has since shifted further: by July 2025 Reuters was reporting that the next Rio chief is expected to be more open to “big deals,” especially to pivot harder into copper. In short, Rio could show up if it sees unique synergies in Chile and a path through Canada’s review, but it will not chase. Finally, in August 2025, Simon Trott has been appointed CEO of Rio, and, as a first strategic shift, he announced he would divide the company to focus into its three most profitable business units: Iron Ore, Aluminium & Lithium, and Copper. Trott pursuing such a large acquisition two weeks into his new role might be a gamble, but Teck's assets certainly align with Rio's overall goals. For Rio, the main complication is its dual-listed company (DLC) structure, which risks reopening the long-running debate over whether it inhibits large-scale M&A. If Rio were to use stock, the natural line would be the UK plc, where most of the copper assets sit, but this trades at a discount to the Australian line. Leading with the premium-rated Ltd shares might be more attractive, but could create structural and legal complexities, particularly if an either/or stock option were offered. Such a structure could trigger heavy DLC arbitrage and volatility between the two lines. From a management perspective, however, the barriers are lower: the new CEO is an insider familiar with the playbooks, while the copper division remains under consistent leadership. In short, Rio is strategically positioned to act if it chooses, but the DLC technicalities remain a potential complication.
Rio Tinto - The most obvious potential contender for Teck is Rio. Strategically it fits: Rio wants more copper and knows Canada well. Management has kept optionality on large M&A, with Jakob Stausholm saying in 2024 that Rio “may consider a large acquisition” but only if the value is compelling in what he called a “hot” copper market. Board-level signalling has since shifted further: by July 2025 Reuters was reporting that the next Rio chief is expected to be more open to “big deals,” especially to pivot harder into copper. In short, Rio could show up if it sees unique synergies in Chile and a path through Canada’s review, but it will not chase. Finally, in August 2025, Simon Trott has been appointed CEO of Rio, and, as a first strategic shift, he announced he would divide the company to focus into its three most profitable business units: Iron Ore, Aluminium & Lithium, and Copper. Trott pursuing such a large acquisition two weeks into his new role might be a gamble, but Teck's assets certainly align with Rio's overall goals. For Rio, the main complication is its dual-listed company (DLC) structure, which risks reopening the long-running debate over whether it inhibits large-scale M&A. If Rio were to use stock, the natural line would be the UK plc, where most of the copper assets sit, but this trades at a discount to the Australian line. Leading with the premium-rated Ltd shares might be more attractive, but could create structural and legal complexities, particularly if an either/or stock option were offered. Such a structure could trigger heavy DLC arbitrage and volatility between the two lines. From a management perspective, however, the barriers are lower: the new CEO is an insider familiar with the playbooks, while the copper division remains under consistent leadership. In short, Rio is strategically positioned to act if it chooses, but the DLC technicalities remain a potential complication.
Glencore -- Glencore has the clearest history of wanting Teck. In April 2023, Teck’s board unanimously rejected a series of unsolicited merger proposals from Glencore, citing execution risks, ESG concerns, and a preference for its own separation plan. Glencore escalated by appealing directly to shareholders and hinting at a hostile bid, but Teck withdrew its separation proposal to explore simpler options, keeping negotiations at bay. By June, Glencore shifted strategy, submitting a non-binding cash offer to acquire Teck’s steelmaking coal unit while pledging commitments to Canada, sparking a competitive process with other bidders. Over the summer, Teck confirmed ongoing discussions but remained non-committal, focusing on maximising value for stakeholders. In November 2023, the parties reached an agreement for Glencore to acquire the coal business for $7bn, alongside Nippon Steel as a minority investor, successfully changing strategy from Glencore’s failed takeover to a targeted asset purchase.
BHP - Teck also aligns with BHP’s stated priorities. Over the past three years BHP has reweighted hard into copper (e.g., the A$9.6bn OZ Minerals acquisition) and has been explicit that copper and potash are its growth pillars. FY25 delivery confirms that stance: BHP reported record copper output and reiterated copper’s role in electrification and long-term demand. Management continues to talk up copper while stressing deal discipline - the same balance it struck during, and after, its 2024 approach to Anglo. Funding looks manageable but not trivial. BHP’s August 2025 materials show net debt ~$12.9bn and a revised upward target net-debt range of $10–20bn, signalling balance-sheet capacity to structure a cash-and-shares offer that can live through a long review. The counterweights are internal: Jansen Stage 1 has been delayed with a cost overrun of up to $1.7bn, and Stage 2 timing is under review. Those commitments don’t bar M&A, but they lift the hurdle rate for any full-price bid that must also absorb QB’s near-term ramp plan and the $330m break fee.
Others -- Freeport looks unlikely. Its recent commentary and reporting point to a strategy of squeezing more copper from existing assets (notably US leach projects) and “avoiding the buyout trend,” which has won investor support. That stance doesn’t read like a company about to pay a break fee and a premium for Teck. Vale SA (VALE3 BZ / Market Cap BRL255bn)'s Base Metals is a wildcard. Backed by Ma’aden/PIF capital and under new leadership, VBM has set out plans to double copper output by 2035 and has been explicit about deploying billions into base-metal growth. It could, in theory, seek a structured deal or minority stake that leaves control anchored in Canada. That said, Investment Canada has materially tightened its approach to foreign SOE influence in critical minerals since 2022, ordering divestments and warning that such investments face close scrutiny - facts that would limit the odds of any Saudi-linked or other SOE-linked bid.
Is Anglo In Play?
On the “who could come for Anglo” question, BHP is the obvious name given the multiple hostile approaches in 2024. It has been explicit about wanting more copper, but equally explicit that it will remain disciplined - language that framed its 2024 pursuit of Anglo and its decision not to pursue the potential combination further. If you need a refresher on this situation, please contact us. BHP is seen as looking to solve for lower near-term growth than its peers in the coming years, hence its approaches last year and this has not changed. Anglo has been busy simplifying its portfolio in the past 12 months, in line with what BHP would have wanted it to do had it succeeded last year, so arguably Anglo is more attractive now that last year to BHP. However, many of the hurdles from last year remain in place today and with management of Anglo having demonstrated their ability to deliver strategic change and with the ‘standalone comparator’ for the board to weigh up against any approach now likely to be the prospects of the enlarged Anglo-Teck, the valuation hurdle would seem to have been raised significantly, which may test BHP’s credentials for being disciplined.
On the “who could come for Anglo” question, BHP is the obvious name given the multiple hostile approaches in 2024. It has been explicit about wanting more copper, but equally explicit that it will remain disciplined - language that framed its 2024 pursuit of Anglo and its decision not to pursue the potential combination further. If you need a refresher on this situation, please contact us. BHP is seen as looking to solve for lower near-term growth than its peers in the coming years, hence its approaches last year and this has not changed. Anglo has been busy simplifying its portfolio in the past 12 months, in line with what BHP would have wanted it to do had it succeeded last year, so arguably Anglo is more attractive now that last year to BHP. However, many of the hurdles from last year remain in place today and with management of Anglo having demonstrated their ability to deliver strategic change and with the ‘standalone comparator’ for the board to weigh up against any approach now likely to be the prospects of the enlarged Anglo-Teck, the valuation hurdle would seem to have been raised significantly, which may test BHP’s credentials for being disciplined.
Approvals Needed
1) Regulatory Clearances (ex-Canada)
Approvals will be required in China, the US the EU, Chile, Japan, South Korea, India, Mexico, Peru, and Australia, reflecting Teck’s global revenue exposure. China is the largest single market, contributing ~29% of FY24 revenue, followed by the US (~14%) and Japan (~12%). South Korea (~10%) and India (~5%) add further Asian weight, while Chile (~7%) reflects Teck’s key copper operations. In Europe, Germany (~4.5%) leads, with Bulgaria, Spain, Finland, and Belgium collectively accounting for a smaller share but still falling under EU oversight. Other markets represent a modest residual contribution.
All approvals must be secured without remedies that would materially affect deal economics.
1) Regulatory Clearances (ex-Canada)
Approvals will be required in China, the US the EU, Chile, Japan, South Korea, India, Mexico, Peru, and Australia, reflecting Teck’s global revenue exposure. China is the largest single market, contributing ~29% of FY24 revenue, followed by the US (~14%) and Japan (~12%). South Korea (~10%) and India (~5%) add further Asian weight, while Chile (~7%) reflects Teck’s key copper operations. In Europe, Germany (~4.5%) leads, with Bulgaria, Spain, Finland, and Belgium collectively accounting for a smaller share but still falling under EU oversight. Other markets represent a modest residual contribution.
All approvals must be secured without remedies that would materially affect deal economics.
2) Regulatory Clearances in Canada
2.1 Investment Canada Act
The merger will undergo a full review under the Investment Canada Act (ICA), a process overseen by Industry Minister Anita Anand and ultimately subject to Cabinet approval under the Liberal minority government led by Prime Minister Mark Carney. Ottawa has become increasingly cautious about foreign takeovers in strategic sectors, particularly in critical minerals, and has tightened scrutiny on transactions with national security implications. However, the Carney government’s stance remains broadly pro-investment, with an emphasis on deals that strengthen Canada’s economic resilience, innovation agenda, and Indigenous partnerships. This transaction has been structured to align closely with those priorities, positioning the new Anglo Teck as a Canadian-led global platform rather than a traditional foreign acquisition.
2.1 Investment Canada Act
The merger will undergo a full review under the Investment Canada Act (ICA), a process overseen by Industry Minister Anita Anand and ultimately subject to Cabinet approval under the Liberal minority government led by Prime Minister Mark Carney. Ottawa has become increasingly cautious about foreign takeovers in strategic sectors, particularly in critical minerals, and has tightened scrutiny on transactions with national security implications. However, the Carney government’s stance remains broadly pro-investment, with an emphasis on deals that strengthen Canada’s economic resilience, innovation agenda, and Indigenous partnerships. This transaction has been structured to align closely with those priorities, positioning the new Anglo Teck as a Canadian-led global platform rather than a traditional foreign acquisition.
To secure ICA approval, Anglo American has proposed a comprehensive package of undertakings designed to remain in place indefinitely (see Appendix I here). Anglo Teck will be headquartered in Canada, with its global leadership team (including the CEO, Deputy CEO, and CFO) based in the country. A majority of senior executives will have their principal offices and residences in Canada and a substantial proportion of the board will be Canadian. These measures are intended to ensure that strategic decision-making remains rooted in Canada and to reassure policymakers that the merged entity strengthens Canadian influence over global critical minerals markets.
The commitments extend well beyond governance, with approximately CAD 4.5bn in investment planned over the next five years. Flagship projects include the CAD 2.1-2.4bn Highland Valley Copper Mine Life Extension Project (HVC MLE), which is expected to create nearly 2,900 construction jobs and support 1,500 ongoing operational roles, and up to CAD 750m in upgrades to the Trail Operations facility to enhance critical minerals processing. Further commitments include CAD 750m for the development of Galore Creek and Schaft Creek, CAD 300m for exploration and technology initiatives, and CAD 100m for training, research, and bilateral partnerships. Anglo Teck also proposes establishing a Global Institute for Critical Minerals Research and Innovation, hosted in Canada and backed by Canadian, UK, and South African partnerships, positioning the country as a centre of excellence in resource innovation. Furthermore, the undertakings also include social and indigenous engagement which is a core part of the ICA strategy. These include at least CAD 200m in indigenous initiatives, commitments to honour all existing agreements with indigenous governments and labour unions, and expanded procurement opportunities for Canadian and indigenous suppliers. Anglo Teck has pledged to maintain no net job losses across its Canadian operations while driving new economic activity through these projects.
By explicitly addressing Canada’s critical minerals strategy, safeguarding domestic leadership, and investing heavily in local infrastructure and research, Anglo American has crafted a proposal that closely aligns with Minister Anand’s push for industrial sovereignty, Finance Minister François-Philippe Champagne’s emphasis on innovation, and the Carney government’s broader economic agenda. These undertakings frame the merger not simply as a foreign takeover, but as a strategic investment in Canada’s global positioning, substantially improving its prospects for ICA approval and minimising political or regulatory friction.
2.2 British Columbia Business Corporations Act
Finally, as part of the legal process in Canada, the merger is subject to receiving both interim and final court orders from the courts of the Province of British Columbia.
2.2 British Columbia Business Corporations Act
Finally, as part of the legal process in Canada, the merger is subject to receiving both interim and final court orders from the courts of the Province of British Columbia.
3) Shareholder Approval
The merger will require approval from both Anglo American and Teck shareholders. In connection with the merger, Temagami Mining Company Limited, SMM Resources Incorporated, Dr. Norman B. Keevil, and certain directors and executives of Teck and Anglo American have entered into customary voting agreements. These agreements cover approximately 79.8% of Teck’s Class A common shares, 0.02% of Teck’s Class B subordinate voting shares, and 0.1% of Anglo American shares, committing these parties to vote in favour of the merger and against any competing proposals. The agreements restrict support for alternative transactions unless a board formally changes its recommendation or the arrangement agreement is terminated. Completion of the merger remains contingent on fewer than 5% of Teck shareholders exercising dissent rights. Ahead of closing, Anglo American will also seek shareholder approval to change its legal name to Anglo Teck plc, effective upon completion.
4) Stock Market Listings
Approvals and acknowledgements will be sought from the TSX, NYSE, LSE, and JSE to ensure the listing or continued listing of Anglo Teck plc shares. The NYSE listing will take the form of ADRs, and all listings will remain subject to each exchange’s formal approval process.
The merger will require approval from both Anglo American and Teck shareholders. In connection with the merger, Temagami Mining Company Limited, SMM Resources Incorporated, Dr. Norman B. Keevil, and certain directors and executives of Teck and Anglo American have entered into customary voting agreements. These agreements cover approximately 79.8% of Teck’s Class A common shares, 0.02% of Teck’s Class B subordinate voting shares, and 0.1% of Anglo American shares, committing these parties to vote in favour of the merger and against any competing proposals. The agreements restrict support for alternative transactions unless a board formally changes its recommendation or the arrangement agreement is terminated. Completion of the merger remains contingent on fewer than 5% of Teck shareholders exercising dissent rights. Ahead of closing, Anglo American will also seek shareholder approval to change its legal name to Anglo Teck plc, effective upon completion.
4) Stock Market Listings
Approvals and acknowledgements will be sought from the TSX, NYSE, LSE, and JSE to ensure the listing or continued listing of Anglo Teck plc shares. The NYSE listing will take the form of ADRs, and all listings will remain subject to each exchange’s formal approval process.
Conclusion
Anglo’s agreed merger with Teck offers compelling industrial logic, underpinned by ~$800m near-term synergies and a further ~$1.4bn long-term uplift from Collahuasi-QB integration. However, the headline terms look relatively underwhelming for Teck holders, leaving the door ajar for others to potentially trump the proposed combination. Rio and BHP stand out as the most credible interlopers, though they would need to factor in a $330m break fee when evaluating the opportunity. Whether or not a counterbid emerges for either or both of Anglo and Teck, the announced 12–18 month timeline already bakes in a protracted Investment Canada review. Anglo and Teck have made the first move, but the contest for control of these copper assets may not be over.
Anglo’s agreed merger with Teck offers compelling industrial logic, underpinned by ~$800m near-term synergies and a further ~$1.4bn long-term uplift from Collahuasi-QB integration. However, the headline terms look relatively underwhelming for Teck holders, leaving the door ajar for others to potentially trump the proposed combination. Rio and BHP stand out as the most credible interlopers, though they would need to factor in a $330m break fee when evaluating the opportunity. Whether or not a counterbid emerges for either or both of Anglo and Teck, the announced 12–18 month timeline already bakes in a protracted Investment Canada review. Anglo and Teck have made the first move, but the contest for control of these copper assets may not be over.