Anglo Teck: mining’s NEXT MEGA merger

Introduction

Teck Resources Limited agreed on a “merger of equals” with Anglo American on 9 September 2025, marking a big milestone in the mining industry over the past decade and potentially the second largest M&A in the industry after Glencore’s acquisition of Xstrata in 2013. The deal follows recent unsuccessful merger attempts over recent years, including BHP's USD$49 billion final offer for Anglo American in 2024 and Glencore's initial takeover bid for Teck Resources in 2023.

This merger is predicted to generate a high value creation opportunity, positioning the new Anglo Teck as part of the top largest mining companies and top largest copper producers. The new entity will reshape the copper sector with strong growth potential and could potentially increase competition for companies such as BHP and Rio Tinto (Ker, 2025).

However, the deal has brought up concerns across Canada, where stakeholders have challenged whether the transaction serves national interest and ensures fair value for their shareholders (Hidayat, 2025).

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Comparative Overview

Anglo American plc, primarily listed on the London Stock Exchange (LSE: AAL), is a London based company which operates in the metals and mining industry, mainly producing Premium Iron Ore, Steelmaking Coal, Manganese, Copper and PGMs (Anglo American plc, 2025). Backed by over a hundred years of mining experience, the multinational company is ranked among the ten biggest mining companies in the world with a market capitalization of £30.06 billion as of 2025 (Joel, 2025).

Teck Resources Limited, founded in 1913, is a Vancouver headquarter mining company primarily listed on the Toronto Stock Exchange (TSX: TECK.A / TECK.B). Teck has its operations located across Canada, Chile, Peru and the United States, with a main focus on copper and zinc production, and a market capitalization of C$29.42 billion.

	Anglo American plc	Teck Resources Ltd
Regions	Africa, Asia, Australia, Europe, North America and South America	North America and South America
Revenue (TTM)	£26.66 billion	C$9.96 billion
Enterprise Value	£36.65 billion	C$34.07 billion
EV/EBITDA (TTM)	11.42x	12.91x
Net Income (TTM)	£-1.52 billion	C$208 million
1-year Total Return	34,38 %	-13,83 %

Sources: Yahoo Finance (2025); Google Finance (2025); Wikipedia, The Free Encyclopedia (2025)

*All values displayed are as of 15th October 2025

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Transaction Summary

*All information in this section is based on Teck Resources Limited, 2025, unless otherwise stated.

With a transaction value of US$53 billion, the combined entity named Anglo Teck will be headquartered in Vancouver, Canada (Pratley, 2025). The transaction, becoming one of the largest deals in the industry, is structured as a merger of equals and, therefore, will not include any premium. Moreover, the deal will have an expected completion date within 12-18 months from the announcement date.

Prior to completion, an issue of 1.3301 new shares to Teck Resources’ shareholders for each Class A and B shares will be implemented by Anglo American. In addition, Anglo American shareholders will receive a special dividend of US$4.5 billion, reflecting an intention to balance and to provide efficient participation from both parties. Upon completion, the ownership of the new company shares will be allocated 62.4% to Anglo American shareholders and 37.6% to Teck Resources' ones.

This offer, which is fully supported and recommended by both boards, has as financial advisors Centerview Partners, Morgan Stanley, Goldman Sachs and RBC Capital Markets for Anglo American, and Ardea Partners LP and BMO Capital Markets for Teck Resources (Basham, 2025). The new board, to be created at or before completion, will be evenly split between the two companies.

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Strategic Rationale

The strategic rationale primarily arises from proposed synergies in the copper market. Copper is fundamental for a range of sectors, including renewal energy and construction. While there has been a notable increase in demand, large mines in Chile and Peru have experienced disruptions, affecting the current market supply (Jasper, 2025).

Thus, this critical mineral is expected to show a significant production growth through Anglo Teck’s optimisation and combination of major mining locations, potentially reflecting additional 175,000 tons of copper across Collahuasi (Chile), Los Bronces (Chile), Quebrada Blanca (Chile), Antamina (Perú), Quellaveco (Peru) and Highland Valley Copper (Canada) (Teck Resources Limited, 2025).

Alongside an outstanding increase of production for other metals (including platinum in Brazil and South Africa) and minerals, the company anticipates annual synergies of US$800 million (pre-taxed) by the 4th year after completion (Denina, 2025). Moreover, synergies from its key locations, such as Collahuasi and Quebrada Blanca, are targeted to provide an additional US$1.4 billion EBITDA revenue (Cohen, 2025).

Provided by: Discovery Alert

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Key Risks

ESG Risks: 

Although Teck Resources Limited (2025) stated that both parties have agreed on an environmental and social alignment that focuses on continuing their respective strong records in safety and health, which safeguards sustainable mining practices, potential execution challenges might still arise due to uncertainty reaching future targets.

Moreover, obtaining a social license is a key problem in the mining industry, as communities residing near mine sites have exhibited concerns regarding potential water contamination and repercussions on their land. This could lead to project delays due to protests or regulatory penalties, demands for higher community benefit agreements (CBAs), and reputational risk, which might damage the overall ESG standing of the combined entity.

Therefore, this transaction will demand a complex regulatory approval from Canadian, U.S., and Chinese governments given the complexity for evaluating these potential environmental and social effects, which is showcased in the 12-18 months approval timeline (Zadeh, 2025).

Integration & Operational Risks:  

The integration of both companies might bring challenges due to possible misalignment in culture and long-term goals. Furthermore, Teck projects to face a steady production over the next years from one of its main copper mines, Quebrada Blanca, which leads to potential higher cost and underperformance to Anglo Teck.

Market & Competitive Risks:

Possible market risks may include currency fluctuations pushed by inflation, geopolitical instability and market reactions to the Anglo Teck deal, such as changes in supply or demand, which could generate price volatility in metals or minerals, mainly copper. In addition, there are further issues about the potential vulnerability of Anglo American from takeover attempts from companies such as BHP which might retry after the unsuccessful 2024 bid (Karaahmetovic, 2025). This could result in share price pressures on Anglo American in the short term and ultimately affect the merger valuation.

Legal & Regulatory Risks

One of the biggest concerns relate to the approval and fairness claims from the Canadian government, considering the significant conditions proposed regarding operational control (Webb, 2025).

The Investment Canada Act (ICA) aims to protect the country from foreign investments that might not display transparent economic or national security advantages. Since the Anglo Teck merger would result in a larger stake proportion for Anglo American with no premium, the “merger of equals” has faced pushback from Canadian stakeholders given that some consider it as a takeover than a merger itself (Hidayat, 2025). These concerns have arisen despite ICA commitments, including a five-year Canadian investment of C$4.5 billion and the new entity being established in Vancouver.

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Conclusion

In conclusion, the agreement is expected to unlock synergies to both Anglo American and Teck, most prominently in the copper market by scaling up their combined exposure to 70%.

Following the agreement, there was a significant share rise, with Anglo American up by 9% and Teck up by 14% on the Toronto Stock Exchange, showcasing the positive market sentiment towards the transaction (Denina, 2025). However, the optimism from analyst opinions has been divided: some foreseen this transaction as a potential long term growth opportunity, while others believe that the current growth has already reflected much of its prospects (Simply Wall St, 2025).

After nearly a month, Anglo American plc (2025) has reinforced their rationale for the merger, highlighting that their future synergies have remained unchanged. The company has shown itself fully supportive of Teck's recent announcement to amplify its operations capacity in Quebrada Blanca, which takes into consideration possible technical challenges. Additionally, acknowledging the successful Anglo American ramp up with Quellaveco in previous years, they have offered Teck full operational support for the upcoming years, noting that diversification might help mitigate operational risks.

Overall, this could establish a new powerhouse focused on copper production and might influence future M&A dynamics in the metals and mining industry.

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References

Anglo American still backs Teck merger despite surprise mine downgrade. (2025, October 08).  AJ Bell. https://www.ajbell.co.uk/news/articles/anglo-american-still-backs-teck-merger- despite-surprise-mine-downgrade

Anglo American plc. (2025, September 09). Anglo American and Teck: A merger of equals. [Transcript]. https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group- v9/PLC/investors/investor-presentations/anglo-american-and-teck-a-merger-of-equals-transcript.pdf

Anglo American plc. (2025). Annual report 2024. https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group-v9/PLC/investors/annual-reporting/2024/aa-annual-report-full-2024.pdf

Anglo American plc. (2025, October 8). Anglo American statement re. Teck’s operational review  and updated outlook. [Press release]. https://www.angloamerican.com/media/press- releases/2025/08-10-2025

Basham, V. (2025, September 09). Latham, Wachtell lead on Anglo American -Teck $53bn mega merger. The Global Legal Post. https://www.globallegalpost.com/news/latham- wachtell-lead-on-anglo-american-teck-53bn-mega-merger-792334767

Cohen, A. (2025, October 9). The Mining Merger That Could Reshape The Copper Industry. Forbes. https://www.forbes.com/sites/arielcohen/2025/10/09/the-mining-merger-that- could-reshape-mineral-security/

Denina, C. (2025, September 10). Anglo American, Teck Resources to merge in second-largest  mining deal ever. Reuters. https://www.reuters.com/world/uk/anglo-american-teck- resources-merge-second-largest-mining-deal-ever-2025-09-09/

Google Finance. (2025). Anglo American plc (LON: AAL). Retrieved October 15, 2025, from https://www.google.com/finance/quote/AAL:LON?window=1Y 

Google Finance. (2025). Teck Resources Limited (TSE: TECK.A). Retrieved October 15, 2025, from https://www.google.com/finance/quote/TECK.A:TSE?window=1Y 

Hidayat, M. (2025, September 18). Anglo American’s $50 Billion Teck Bid Faces Canadian Opposition. Discovery Alert. https://discoveryalert.com.au/news/anglo-americans-teck-bid-canadian-opposition-2025/ 

Hidayat, M. (2025, October 09). Anglo American-Teck Merger: Creating a $50+ Billion Copper Mining Powerhouse. Discovery Alert. https://discoveryalert.com.au/news/anglo-american-teck-merger-2025-analysis-implications/ 

Jasper, C. (2025, October 07). Copper prices to keep rising as demand grows and global production is hit by disruption. ABC News. https://www.abc.net.au/news/2025-10- 07/copper-supply-shortage-global-production-disruption/105852214

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