US EditionPolitical Aims, Critical Minerals Strategy Key to Review of Teck-Anglo Deal: Experts
The merger forms Anglo Teck with annual cost savings of $800 million and aims to meet rising copper demand from electric vehicles and renewable energy sectors.
- On Tuesday, London-listed Anglo American plc and Canada's Teck Resources Limited agreed to a $53 billion merger-of-equals to form Anglo Teck, headquartered in Vancouver, British Columbia, with Anglo shareholders holding 62.4% and Teck investors 37.6%.
- Surging demand from electric vehicles and AI infrastructure has prompted Anglo American and Teck Resources to restructure amid industry-wide takeover attempts, with Anglo pursuing pure-play copper and Teck enhancing copper exposure.
- The companies outlined key deal mechanics, noting a zero-premium, all-share structure, a $330 million break fee, 12-18 months for regulatory approval, and $800 million in annual savings, Anglo said.
- Regulators have flagged the Investment Canada Act review as the main hurdle, with March 5 changes adding national security concerns and Industry Minister Mélanie Joly emphasizing jobs and Indigenous participation; if approved, Teck would lose its status as a Canadian critical minerals company.
- With over 70 per cent exposure to copper, the combined Anglo Teck would produce 1.2 million tonnes annually and pledged $4.5 billion in Canadian spending over five years, the companies said.
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Critical mineral policy and strategy will be at the heart of Ottawa's concerns, which will decide whether or not to approve the proposed merger between Canadian company Teck Resources and British company Anglo American.
Anglo American, Teck to merge in second-largest mining deal ever
LONDON — London-listed miner Anglo American and Canada's Teck Resources plan to merge, the two companies said Tuesday, marking the sector's second-biggest M&A deal ever and forging a new global copper-focused heavyweight. Under the proposed deal, which will require regulatory approvals, Anglo American shareholders would own 62.4% of new company Anglo Teck, while shareholders in Teck would hold 37.6%. Anglo Teck will be headquartered in Canada bu…
The merger would give birth to a critical mineral giant worth $70 billion. The post Fusion Teck-Anglo: one of the first reviews since the law appeared first on Les Affaires was updated.
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