London, Sept 9 British mining group Anglo American and Canadian peer Teck Resources on Tuesday announced plans for a multi-billion-dollar merger, creating a champion of copper production and other critical minerals.
A combined group is worth more than US$50 billion according to the companies’ current market values, while the agreed deal is expected to complete in 12-18 months, subject to regulatory hurdles.
It will create Anglo Teck, headquartered in Vancouver and with a primary listing in London, according to a joint statement. It is the sector’s biggest tie-up for some years.
Copper demand has exploded in recent years as the world transitions to cleaner energy and artificial intelligence (AI).
The metal is needed for solar panels, wind turbines, electric-vehicle batteries and consumer electronics.
“This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada,” Teck chief executive Jonathan Price said in the statement.
Anglo American shareholders will own 62.4 percent of the new group and Teck shareholders the remainder.
Price added that the new company would be “a top five global copper producer with exceptional mining and processing assets located across Canada, the United States, Latin America, and Southern Africa”.
