Teck Resources Limited and Anglo American plc have agreed to merge and form Anglo Teck, a global critical minerals champion and top five global copper producer. The merger will result in US$800 million in pre-tax annual synergies and an additional US$1.4 billion of underlying EBITDA uplift from adjacent operations. The new entity will have a strong balance sheet, a focus on sustainability, and a commitment to growth and innovation. The merger is expected to be completed within 12-18 months, subject to regulatory approvals. Both companies’ boards unanimously support and recommend the merger. Post-merger, Anglo American shareholders will own approximately 62.4% of Anglo Teck, while Teck shareholders will own around 37.6%. The companies are committed to maintaining a strong presence in Canada and South Africa, with the global headquarters located in Vancouver. The merger will create significant value through synergies and growth opportunities in the copper, iron ore, and zinc sectors. The companies aim to deliver long-term value for shareholders and stakeholders while upholding high standards of safety, health, and environmental responsibility.

The transaction will be implemented through a plan of arrangement, with Anglo American issuing 1.3301 ordinary shares for each Teck share. A special dividend of US$4.5 billion will be paid to Anglo American shareholders ahead of completion. The new entity will be listed on the London Stock Exchange, Johannesburg Stock Exchange, Toronto Stock Exchange, and New York Stock Exchange as American Depositary Receipts. The merger aims to unlock significant value for shareholders, enhance portfolio quality, and position Anglo Teck as a global leader in critical minerals production. The companies will work together to advance responsible growth and ensure resilience in their operations.

Read more at GlobeNewswire: Teck and Anglo American to combine through merger of equals