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Anglo American and Teck Resources Announce Merger to Form $53 Billion Copper Powerhouse
vancouver, Canada – Anglo american and Teck Resources have agreed to merge, creating a new $53 billion copper-focused mining giant poised to capitalize on surging demand driven by the artificial intelligence boom and the global transition to renewable energy. The combined company, to be named Anglo Teck, will be headquartered in Vancouver, Canada, and offer over 70% copper exposure, according to a joint statement released today.
The merger arrives as copper prices have climbed approximately 15% this year, fueled by the intensive power requirements of AI data centers and the infrastructure needed for electric vehicles and renewable energy sources. While prices recently dipped from record highs following the implementation of a 50% import levy on copper by the U.S. in early August, the long-term outlook for the metal remains strong.
Under the terms of the agreement, Anglo American shareholders will own approximately 62.4% of Anglo Teck, while Teck Resources shareholders will hold roughly 37.6%. Both companies’ boards have approved the deal,which is expected to finalize within 12 to 18 months,pending regulatory and shareholder approvals.
This merger follows previous rebuffs of acquisition attempts for both companies. Last year, Anglo american, with a market capitalization of around $36 billion, rejected a $50 billion offer from BHP Group. Teck Resources, valued at $17 billion, previously turned down a $23 billion bid from Glencore in 2023, though it subsequently sold it’s steelmaking coal business to the Swiss commodities trading firm.
Trading activity reflected investor enthusiasm for the deal, with Anglo American shares rising 10% in London and Teck Resources shares surging 17% in premarket trading.
