In a seismic shift for the global mining landscape, Anglo American plc and Teck Resources Limited have announced a landmark “merger of equals” valued at approximately $53 billion, creating a new entity named Anglo Teck. This deal, revealed on September 9, 2025, positions the combined company as the world’s fourth-largest copper producer and a dominant force in critical minerals essential for the energy transition. With headquarters in Vancouver, Canada, and a primary listing on the London Stock Exchange, Anglo Teck promises over 70% exposure to copper, alongside robust iron ore, zinc and crop nutrient operations. The merger not only consolidates complementary portfolios but also signals a broader industry pivot toward sustainable, high-growth resources amid surging demand for electrification and green technologies.
The announcement sent shockwaves through markets: Anglo American’s shares surged 8% on the Johannesburg Stock Exchange (JSE) in early trading, reaching R584.67, while Teck’s Frankfurt-listed shares jumped nearly 22%. This enthusiasm reflects investor confidence in the deal’s value creation, including $800 million in annual pre-tax synergies by year four post-completion and an additional $1.4 billion in average annual EBITDA from Chilean operations between 2030 and 2049. As the largest mining merger in over a decade, it underscores the sector’s consolidation frenzy, driven by the need to scale up for critical minerals like copper, which powers electric vehicles (EVs), renewable energy infrastructure and data centres.
The Strategic Rationale: Complementary Assets and a Copper-Centric Future
At its core, the merger marries Anglo American’s established copper dominance with Teck’s growth-oriented pipeline, creating what both CEOs describe as a “global critical minerals champion.” Anglo American, a London-based giant with roots in South Africa, brings a portfolio weighted towards copper (770,000 tonnes in 2024), premium iron ore from Minas-Rio in Brazil and crop nutrients from the Woodsmith project in the UK. Its key copper assets include the Los Bronces mine in Chile (50.1% stake, output of 215,000 tonnes in 2023) and a 44% interest in the massive Collahuasi mine, one of the world’s largest copper reserves at 3.93 billion tonnes of ore grading 0.66% copper.
Teck, Canada’s largest diversified miner valued at around $17 billion pre-merger, complements this with its own copper powerhouse. In 2024, Teck produced 446,000 tonnes of copper, a 50% year-on-year increase driven by the ramp-up of its Quebrada Blanca Phase 2 (QB2) project in Chile—an $8.7 billion investment expected to double Teck’s copper output to 600,000 tonnes annually. Other Teck assets include the Highland Valley Copper mine in British Columbia (Canada’s largest) and a 22.5% stake in the Antamina mine in Peru, one of the world’s biggest copper-zinc operations. The proximity of Collahuasi and Quebrada Blanca in Chile offers a standout synergy, enabling operational efficiencies and cost savings through shared infrastructure.
Under the terms, Anglo American shareholders will own 62.4% of Anglo Teck, with Teck holders taking 37.6%. The exchange ratio is 1.3301 Anglo shares per Teck share, representing a 17% premium to Teck’s closing price on September 8, 2025. Duncan Wanblad, Anglo’s CEO, will lead as CEO of the enlarged group, with Teck’s Jonathan Price as deputy CEO. The board will be evenly split between directors from both companies, emphasising the “merger of equals” ethos. Regulatory approvals are anticipated within 12–18 months, with the deal requiring approval from authorities in Canada, South Africa and other jurisdictions.
This union comes at a pivotal moment for both companies. Anglo fended off two unsolicited bids from BHP in 2024, valued at up to $49 billion, which targeted its copper assets but were rejected for undervaluing the company and imposing complex demergers of its platinum and iron ore units. Teck, meanwhile, sold its steelmaking coal business to Glencore for $9 billion in July 2024, shedding a $7 billion asset to focus on metals amid investor pressure. The coal divestiture netted Teck $7.3 billion in cash, bolstering its balance sheet for copper expansion. As Wanblad noted: “Having made significant progress with Anglo American’s portfolio transformation… now is the optimal time to take this next strategic step.”
Why This Merger Matters: Bolstering Defences and Riding the EV Wave
The deal’s significance extends far beyond balance sheets. It cements Anglo’s pivot to copper—a metal central to the green energy transition—while propelling the group into the top tier of global producers. Combined, Anglo Teck will boast over 1 million tonnes of annual copper production, capturing around 5–6% of global output and ranking just behind giants such as BHP, Freeport-McMoRan and Codelco. This scale provides resilience against takeover bids, as both companies have been targets: Glencore pursued Teck in 2023 for $16.6 billion (rejected), and BHP eyed Anglo for its copper portfolio.
Shareholders stand to gain immediately: Anglo will pay a special $4.5 billion dividend, funded partly by R44 billion from its platinum stake sale. Longer-term, the merger unlocks “adjacency upside” from Chilean mines, with more than 70% copper exposure to capitalise on EV demand. Copper’s role in EVs is indispensable: a typical electric vehicle requires 53–80 kg of copper—over twice that of a petrol car—for wiring, motors, batteries and charging infrastructure. Global EV sales hit 13.63 million in 2023 (up 32% year-on-year), and forecasts predict 54 million by 2040, driving copper demand to 2.8 million tonnes annually by 2030.
Yet efficiency innovations may temper per-vehicle copper use, dropping from 73 kg in 2022 to 65 kg by 2030 due to lighter wiring and advanced batteries. Still, overall demand is set to surge: the International Copper Association projects EV-related copper needs rising from 185,000 tonnes in 2017 to 1.7 million tonnes by 2027. Broader trends amplify this: wind turbines use 3–5 tonnes of copper each, solar panels about 4 tonnes per MW, and grid upgrades could require 427 million tonnes by 2050. The IEA warns of supply deficits, with copper facing a 30% shortfall by 2035 under current policies, exacerbated by a 23-year average mine development timeline.
Key Merger Benefits (Summary)
Copper Production: >1 million tonnes annually, Top 5 global producer
Synergies: $800M annual cost savings by year 4, $1.4B EBITDA uplift from Chilean assets (2030–2049)
Portfolio Exposure: 70%+ copper, plus iron ore, zinc, crop nutrients
Shareholder Value: $4.5B special dividend, 17% premium for Teck shares
Strategic Scale: Defends against takeovers, funds growth in critical minerals
Industry Context: A Broader Shift Toward Critical Minerals
This merger epitomises 2025’s mining trends: consolidation for scale, a laser focus on critical minerals and sustainability imperatives. The IEA’s Global Critical Minerals Outlook 2025 highlights weakening investment momentum—up just 5% in 2024 versus 14% in 2023—amid plateauing exploration and supply concentration risks. China dominates processing (e.g. 92% of rare earths), prompting export controls on gallium, germanium and antimony in late 2024, escalating geopolitical tensions. The US Department of the Interior’s draft 2025 Critical Minerals List includes 54 commodities, emphasising supply chain resilience.
Emerging technologies offer hope. AI-driven exploration, direct lithium extraction and tailings re-mining could boost supply diversification. Recycling could cut new mine needs by 25–40% by mid-century. Yet challenges persist: the US may fall short on domestic cobalt, nickel and graphite needs even with all announced projects. Globally, demand for copper in EVs, renewables and AI data centres could triple by 2050, according to S&P Global, straining a market already facing deficits.
Anglo Teck’s formation aligns with these dynamics, enhancing resilience through Canadian headquarters (bolstering North American supply chains) and commitments to responsible mining. As Price stated: “Bringing together our world-class copper assets… provides enormous resiliency and optionality.” Wanblad echoed: “We are propelling Anglo Teck to the forefront of our industry in terms of value-accretive growth in responsibly produced critical minerals.”
Challenges Ahead: Regulatory Hurdles and Execution Risks
While promising, the merger faces hurdles. Approvals in Canada (Investment Canada Act) and South Africa—where Anglo has deep ties—could impose conditions on jobs and investments. South Africa’s Public Investment Corporation, a major Anglo shareholder, scrutinised BHP’s 2024 bid over economic impacts. Environmental concerns loom, given copper mining’s water and land footprint, though both firms emphasise sustainability (e.g. Teck’s renewable-powered QB2).
Execution risks include integrating operations across continents and navigating volatile copper prices, which hit records in 2025 amid supply tightness. A sustained shock could raise battery costs by 40–50%, according to the IEA. Geopolitics adds uncertainty: US–China tensions and export bans could disrupt supply chains, while deep-sea mining debates intensify for minerals like cobalt.
Looking Forward: A New Era for Mining
The Anglo–Teck merger heralds a transformative chapter for mining, accelerating the shift to critical minerals amid the energy transition. By 2030, Anglo Teck aims for over 1 million tonnes of copper output, funding expansions like Los Bronces underground and QB2 optimisations. For investors, it offers diversified exposure to high-demand assets; for the industry, a model of consolidation to meet IEA-projected deficits.
As global EV adoption surges—potentially 40–70 million units by 2025—and renewables scale, copper’s “green gold” status is assured. Yet success hinges on innovation, recycling and supportive policies to bridge supply gaps. Anglo Teck’s bold move positions it as a leader in this race, but the mining world must collaborate to ensure critical minerals flow responsibly.
As Wanblad put it, this is a “unique opportunity to unite two highly regarded mining companies” for a sustainable future.