Anglo American agrees $53 billion merger with Teck Resources

Anglo American agreed on Tuesday to merge with Canada’s Teck Resources in a transaction valued at $53 billion, bringing together two major miners with London and Toronto footprints and reshaping the global base metals landscape. The deal was announced this morning and will be scrutinised by UK investors given Anglo’s listing and the sector’s importance to the FTSE.

The combination aims to strengthen scale in copper and other critical materials used in electrification and energy transition projects. Reuters reported that the agreement follows months of consolidation talk across the mining industry as companies seek cost efficiencies and portfolio depth. The parties did not immediately publish detailed synergy targets, but analysts said the scale effect in procurement and project development is likely to be a focal point for investors.

Regulatory approvals will be required in several jurisdictions. In London, scrutiny will focus on market concentration in specific commodities and the implications for supply chains linked to UK manufacturing and infrastructure. Shareholder votes will also be necessary. Bankers said the transaction structure and exchange ratios will be assessed relative to recent peer deals and commodity price assumptions.

Copper exposure is a central driver. With demand linked to grid upgrades, electric vehicles and renewable installations, producers have been racing to secure reserves and deliver projects at predictable costs. The merged group is expected to review its development pipeline to sequence capital spending through the cycle.