Multinational mining company Anglo American and Canadian resource company Teck Resources have agreed to merge into a global critical minerals entity and top five global copper producer, the Anglo Teck group, to be headquartered in Canada.
Join our WhatsApp channel for more news on Anglo Teck
Both companies believe the merger will be attractive for their shareholders and stakeholders, and enhance portfolio quality, resilience and strategic positioning.
Bringing together the strengths of both companies, Anglo Teck will leverage proven capabilities in technical and operational excellence, sustainability, product marketing and project execution to deliver significant, value-accretive growth through the cycle.
ALSO READ:
Copper and iron ore power Anglo American’s $3 Billion interim earnings
The entity will hold a portfolio of operations including six copper assets, alongside iron ore and zinc businesses. It will be one of the world’s largest copper producers, with major brownfield and greenfield development projects, located in attractive and well-established mining jurisdictions, to further grow the business.
The merger is expected to deliver annual pre-tax synergies of approximately US$800 million by the end of the fourth year following completion of the transaction, with approximately 80% expected to be realised on a run rate basis by the end of the second year following completion, driven by economies of scale and operational efficiencies.
Anglo Teck will have global headquarters in Vancouver and corporate offices to support the global group in London and Johannesburg.
It is expected to play a significant role in mining and business leadership in South Africa and the UK, and will be strongly positioned to support the critical minerals strategies of the three countries.
It will also support the priorities of local communities and stakeholders, with country offices and marketing hubs continuing to support the operational footprint of the combined business.
Anglo American has a long history of contributing to the economic growth of South Africa and supporting the country’s national priorities, and Anglo Teck will continue to uphold and advance these commitments.
Its subsidiaries with operations in South Africa will continue to comply with all relevant empowerment and mining license requirements.
ALSO READ:
Anglo seeks arbitration after Peabody ends coal deal
Duncan Wanblad, CEO of Anglo American, commented: “We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long.
“Having made such significant progress with Anglo American’s portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth.
“We are all committed to preserving and building on the proud heritage of both companies, both in Canada, as Anglo Teck’s natural headquarters, and in South Africa where our commitment to investment and national priorities endure.”