Anglo American acquires Canadian Teck Resources
A $60 billion-plus group emerges in one of the most significant mining deals of the past decade
by Mo.D.
3' min read
3' min read
M&A's maxi deal in the mining sector. Anglo American took over Canada's Teck Resources and created a more than$60 billion group, in one of the most significant transactions in the industry in the past decade. The deal, which is still subject to the green light from authorities in the United States, Canada, and China, hands Anglo the coveted Teck copper mining platform at a time when the British group is the subject of speculation and shareholder pressure.
On the London market, Anglo's stock immediately jumped 10%, while the Canadian company's shares were up about 15% on Wall Street. The former closed with a market capitalisation of over 29 billion pounds (39.7 billion dollars) and the latter over 19 billion dollars.
Offer details
.Anglo will, according to the announcement, offer 1.3301 shares of its own stock for each Teck share, representing a 17% premium over the closing of the Canadian stock on Monday 8 September, according to Bloomberg calculations. The British group, however, will distribute an extraordinary dividend of $4.5 billion to its shareholders prior to the merger, reducing the effective premium to about 1%. In fact, the two companies have presented the deal as a 'zero premium' transaction.
Anglo has already obtained the support of the Keevil family, Teck's controlling shareholder through multiple class A voting shares, whose veto had caused a takeover attempt by Glencore in 2023 to fail. However, the go-ahead of two-thirds of the class B shareholders, which includes China Investment Corp. as the largest investor, remains necessary.
The boards of directors of both companies unanimously recommended the transaction. Anglo's CEO, Duncan Wanblad, will lead the new group, while Jonathan Price, Teck's current CEO, will have the role of deputy. The combined company will be called Anglo Teck, will be based in Vancouver and will maintain its main listing in London. On the industrial side . it will have an annual production of about 1.2 million tonnes of copper and key assets in Chile, Peru and Canada.
