Wedoany.com Report-Sept. 14, Anglo American and Teck Resources have announced a merger of equals to form Anglo Teck, a new global critical minerals company. The merger is expected to position Anglo Teck as a “top five” global copper producer, offering investors over 70% exposure to copper.

The deal will be executed through a plan of arrangement, with Anglo American issuing shares to Teck shareholders.

The combination will be executed through a plan of arrangement, with Anglo American issuing 1.3301 ordinary shares for each outstanding Teck Class A common share and Class B subordinate voting share. After the merger, Anglo American and Teck shareholders will own approximately 62.4% and 37.6% of Anglo Teck, respectively.

The merger is projected to deliver annual pre-tax synergies of around $800 million (£588.93 million) by the fourth year after completion. Additionally, the company aims for $1.4 billion in EBITDA synergies annually from 2030 to 2049 and plans to optimise the value of adjacent assets in Collahuasi and Quebrada Blanca.

Ahead of the merger, Anglo American intends to distribute a special dividend of $4.5 billion to its shareholders, supporting an efficient balance sheet and equitable value delivery for both companies’ investors.

Anglo American CEO Duncan Wanblad said: “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. 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.”

Anglo Teck will leverage the strengths of both companies across mining operations, boasting an industry-leading portfolio that includes six world-class copper assets, along with high-quality iron ore and zinc businesses. The combined entity will have a global capital markets presence, with planned listings on the London, South Africa, Toronto, and New York stock exchanges. The global headquarters of Anglo Teck will be based in Vancouver.

Teck CEO Jonathan Price said: “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. 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.”

The merger remains subject to customary conditions and approvals, including under the Investment Canada Act.

Financial and legal advisory teams have been appointed for the transaction. Ardea Partners and BMO Capital Markets are acting as financial advisors to Teck, with legal support from Wachtell, Lipton, Rosen & Katz, Stikeman Elliott, and Freshfields; Felesky Flynn serves as legal tax advisor. Anglo American’s advisors include Centerview Partners, Morgan Stanley, Goldman Sachs, and RBC Capital Markets, with legal counsel from Latham & Watkins, Torys, and Webber Wentzel.

The merger aims to create a globally competitive, resilient, and agile critical minerals company capable of advancing copper, iron ore, and zinc production while pursuing long-term growth opportunities.