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VANCOUVER — Teck Resources Ltd. has signed a deal to merge with Anglo American PLC in what would be the largest mining deal of the last decade.
The proposed “merger of equals” would combine London-based Anglo, worth about $50 billion before the deal was announced, and Vancouver-based Teck’s $24 billion value to create a critical minerals giant. The new company would also be a global top-five copper producer.
“Today’s announcement marks a truly monumental day for our mining sector,” said Anglo chief executive Duncan Wanblad — who is set to stay on as head of the combined company — on an analyst call Tuesday.
The proposed deal would see Wanblad, along with Anglo American chief financial officer John Heasley, move to Vancouver, where the combined Anglo Teck would be based.
Teck CEO Jonathan Price will be deputy CEO, while Teck chair Sheila Murray will be chair of Anglo Teck.
“This creates one of the world’s leading copper exposed mining companies, with its headquarters here in Canada,” said Price on the call.
Canadian Industry Minister Melanie Joly said in a statement that the federal government will address several issues as it considers the merger, including the combined firm’s pledge to have its senior leadership based in and reside in Canada.
The deal would see Teck shareholders get 1.3301 Anglo American share for each class A and class B share they own. Anglo also plans a roughly US$4.5 billion dividend to its shareholders to help balance out its value compared with Teck, but Anglo shareholders will still own about 62.4 per cent of the combined company, while existing Teck shareholders will hold 37.6 per cent, on a fully diluted basis.
The deal comes as Teck struggles with operational issues at its massive Quebrada Blanca project in Chile, but the companies say a combination will mean a significant boost to value at the site because it could be run in tandem with the nearby Collahuasi mine that Anglo part-owns.
It also follows on takeover attempts of both companies. Glencore PLC made a roughly US$23 billion bid to buy all of Teck in 2023, only to end up buying Teck’s coal business for US$7.3 billion, while BHP Group made a US$49 billion bid for Anglo last year as it sought the company’s copper assets.
There is still the potential for other companies to try and make a bid for Teck, especially since the company’s value has been under pressure from its Quebrada Blanca issues, said National Bank analyst Shane Nagle.
“We believe with Teck ultimately put in play, there are likely to be several interested parties willing to pay a premium valuation for the company’s portfolio pending further clarity on the ongoing ramp up of QB,” he said in a note.
The deal has a US$330 million break fee, while the companies say they expect the merger to be completed in the next 12 to 18 months.
A two-thirds majority vote by Teck’s class A and class B shareholders, voting as separate classes, is required to approve the deal, while a majority vote is needed by the Anglo American shareholders.
Owners of about 79.8 per cent of Teck class A shares have agreed to vote for the deal, including Teck chair emeritus Norman B. Keevil, who endorsed the deal in a statement.
“This agreed merger will begin a powerful next chapter, bringing together two respected, 100-year-old companies into a single world-class mining one, headquartered here in Canada.”
This report by The Canadian Press was first published Sept. 9, 2025.
Companies in this story: (TSX:TECK.B)
The Canadian Press
