Anglo American merges with Teck Resources
It will be an equal merger to form Anglo Teck group, a global critical minerals organisation and top five global copper producer.
The merger of Anglo American and Teck Resources is expected to deliver annual pre-tax synergies of approximately US$800mln 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.
The companies also have high-quality premium iron ore and zinc businesses.
Anglo Teck will also work with key stakeholders and partners in Collahuasi and Quebrada Blanca to optimise the value of these adjacent assets to realise US$1.4bln (100% basis) of underlying earnings before interest, taxes, depreciation, and amortisation revenue synergies on an average pre-tax annual basis from 2030-49. This is to be achieved primarily through operational integration and optimisation of Collahuasi and Quebrada Blanca.
Anglo American states this will build on their similar adjacency partnerships in Brazil and elsewhere in Chile.
The company see this as a ‘rare opportunity’ to unite two 'highly regarded' mining companies with shared values and deeply complementary portfolios.
It is claimed to create a business with the scale, capabilities, and ambition to ‘lead in the minerals that power a cleaner, more connected and more secure world’.
