Anglo American and Teck Resources have formalised a zero-premium merger to create a new entity, Anglo Teck, focused on copper. The deal allocates 62.4% of the capital to Anglo American shareholders and 37.6% to Teck shareholders. The transaction also includes a $4.5bn special dividend aimed at optimising the new group’s opening balance sheet.
An integrated platform for global copper growth
The merged company will combine robust operational assets, including a 60% stake in the Quebrada Blanca Phase 2 (QB2) project in Chile, considered strategic for copper supply. Other major sites include Highland Valley Copper in Canada (90%) and Antamina in Peru (22.5%), recognised as one of the most cost-competitive copper-zinc mines globally.
Teck’s development pipeline includes high-return projects such as San Nicolas in Mexico (50%) and Zafranal in Peru (80%). The company maintains a strategy of reducing single-project exposure through joint ventures across its entire development portfolio. Longer-term growth options are also identified with Galore Creek in Canada and Nueva Union in Chile.
Strategic valuation and cost discipline
According to estimates from Wood Mackenzie, Teck’s post-tax net asset value stands at $10.8bn, including $13.8bn from copper and $1.1bn from zinc, offset by $4.1bn in central costs. This valuation does not account for additional growth potential at the QB site, nor potential synergies with Collahuasi or a life extension at the Red Dog mine.
Anglo American’s cost discipline reinforces the strategic rationale for the merger. The group achieved $1.3bn in annual savings in 2024 and targets a further $0.8bn in corporate synergies. Management also anticipates a market re-rating driven by increased copper exposure, a streamlined portfolio and consolidated growth prospects.
Regulatory hurdles in Canada
The main identified risk remains regulatory scrutiny under the Investment Canada Act. The process requires approval from the Minister of Industry, who must confirm that the deal aligns with Canada’s economic and national security interests. The outcome of this review may determine the finalisation of the transaction.
