Teck and Anglo American to combine through merger of equals to form a global critical minerals champion

Executive Summary

• Anglo American and Teck Resources have signed a definitive agreement to combine in an all‑share “merger of equals” creating Anglo Teck, a top‑five global copper producer headquartered in Canada.
• The transaction proposes a 1.3301 share exchange (or Exchangeable Shares for eligible Canadian Teck shareholders) giving Anglo American shareholders ~62.4% and Teck shareholders ~37.6% of the post‑completion entity.
• Expected material synergies: US$800 million of recurring pre‑tax annual savings plus an additional US$1.4 billion of underlying EBITDA revenue synergies from adjacent Collahuasi and Quebrada Blanca assets (2030‑2049), potentially adding ~175,000 t of copper per year.

Key Details

• Transaction Structure: Plan of arrangement; Anglo American issues 1.3301 ordinary shares (or Exchangeable Shares) for each Teck class A common share and class B subordinate voting share.
• Special Dividend: Anglo American will declare a US$4.5 billion special dividend (~US$4.19 per share) to be paid before merger completion, creating an “opening balance sheet.”
• Ownership Post‑Closing: Anglo American shareholders ~62.4%; Teck shareholders ~37.6% of Anglo Teck plc (fully diluted).
• Synergy Timeline & Costs:
• US$800 million recurring pre‑tax synergies realized by end of Year 4 (≈US$775 m by Year 3); one‑off cash costs ≈US$700 m in first three years.
• US$1.4 billion underlying EBITDA revenue synergies (average annual) from Collahuasi & Quebrada Blanca (2030‑2049); one‑off cash cost ≈US$1.9 bn over first four years.
• Additional one‑off cash synergy of ≥US$200 m from working‑capital improvements within three years.
• Financial Impact: Combined 2024 underlying EBITDA ≈ US$11.4 bn (Anglo American US$8.46 bn + Teck CAD$2.93 bn). Anticipated pre‑tax recurring synergies represent ~7% of combined EBITDA.
• Capital Markets Footprint: Planned primary listing on LSE; additional listings on JSE, TSX and NYSE (as ADRs), subject to exchange approvals.
• Governance: Post‑closing board composition 50/50 nomination by each parent; Sheila Murray as Chair; Duncan Wanblad (CEO), Jonathan Price (Deputy CEO), John Heasley (CFO).
• Headquarters & Offices: Global HQ in Vancouver, Canada; corporate offices in London and Johannesburg.
• Closing Timeline: Expected within 12‑18 months, subject to customary regulatory, shareholder and court approvals (including Investment Canada Act, competition clearances).
• Break Fee: US$330 million payable by either party if the transaction is terminated for a superior proposal.
• Shareholder Recommendations: Both boards unanimously recommend shareholders vote in favour; fairness opinions obtained from Scotiabank and BMO Capital Markets.
• Investor Call: Tuesday, September 9 2025 – 8:00 AM ET (webcast link provided).

Notable Quotes

“We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion…” – Duncan Wanblad, CEO, Anglo American.

“This merger of two highly complementary portfolios will create a leading global critical minerals champion...” – Jonathan Price, CEO, Teck.