Anglo American to Merge with Teck Resources

Anglo American, De Beers’ parent company, is merging with Canadian mining group Teck Resources, aiming to corner the copper market.

The combined entity will be called Anglo Teck and will be headquartered in Vancouver, Canada, both companies said Tuesday.

Anglo American shareholders will own around 62.4% of Anglo Teck post-completion, while Teck shareholders will hold about 37.6%. Anglo American CEO Duncan Wanblad will take on that role for the combined group, while Jonathan Price, Teck’s president and CEO, will be deputy CEO.

The post-merger entity will have an exposure of more than 70% to copper, a critical metal for electrical applications and renewable energy.

It will “remain committed to Anglo American’s announced portfolio simplification, including ongoing work to separate De Beers for value,” the companies said.

Both Anglo American and Teck have been the target of takeover bids in recent years. Last year, Australian mining giant BHP tried to acquire Anglo American. In 2023, Glencore placed a hostile bid for Teck. Glencore ended up buying Teck’s coal business.

Anglo American’s restructuring, including its plan to divest De Beers, was widely seen as a way of making the existing group attractive to investors and fending off takeover attempts.

“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,” Wanblad said.

Anglo Teck’s market capitalization will exceed $50 billion, according to calculations in the media. The deal will complete in 12 to 18 months, the companies predicted.

“Whilst there will be no direct impact on De Beers Group and our separation from Anglo, everyone — countries, shareholders, communities — will benefit from a stronger company with consistently strong values,” De Beers CEO Al Cook wrote in a LinkedIn post.

Image: Anglo American machinery at a mine in South Africa. (Shutterstock)