Fertilizer International 529 Nov-Dec 2025
21 November 2025
Anglo American announces merger of equals with Teck
Anglo American and Teck Resources jointly announced a merger agreement on 9th September.
The agreement – which brings together the two major miners to form Anglo Teck – is a merger of equals that will create a global critical minerals champion, both companies said.
Headquartered in Canada, the merged business would be strongly positioned as a top-five global copper producer. The creation of a premier critical minerals portfolio, including the possession of world-class copper assets, is a key part of the merger’s rationale.
Major operational savings (synergies) and a substantial uplift in earnings (EBITDA) are also anticipated.
Unlike BHP’s hostile bid for Anglo American last year, the boards of Anglo American and Teck have both given unanimous support to the merger and recommended the transaction. On completion, Anglo American shareholders would own around 62.4% of Anglo Teck plc with Teck shareholders owning the other 37.6% of the new company.
Anglo Tech’s combined copper production would be around 1.2 million tonnes per annum (t/a), with this expected to grow by around 10% to 1.35 million t/a in 2027. The merged entity would also be:
• A major producer of premium iron ore (61 million t/a) able to supply cleaner steelmaking from mines in South Africa and Brazil.
• One of the world’s largest producers of mined zinc through the world-class Red Dog mine in Alaska, as well as the owner of one of the world’s largest integrated zinc and lead smelting and refining facilities at Trail Operations in British Columbia.
The financial benefits accruing from the merger include:
• A special dividend to Anglo American shareholders of $4.5 billion (around $4.19 per share) ahead of completion.
• An estimated $800 million in annual synergies (pre-tax, recurring) realised by the end of the fourth year after completion.
• Additionally, from 2030-2049, an average annual uplift to EBITDA of $1.4 billion is predicted, this being delivered by synergies between the adjacent Collahuasi and Quebrada Blanca mining operations. Potentially, these are expected to raise annual copper production by an additional 175,000 tonnes approximately.
• Finally, a stronger balance sheet underpinned by a larger, more diversified asset and cash flow base, including premium iron ore and zinc.
Assets include crop nutrients
“Anglo Teck will remain committed to Anglo American’s announced portfolio simplification, including ongoing work to separate De Beers for value alongside completion of the steelmaking coal and nickel disposals. Anglo American will continue to advance these efforts prior to completion,” the companies said in a statement.
Anglo American’s assets also include crop nutrients, namely the under-development Woodsmith polyhalite project in northern England. As part of its current portfolio simplification, the company is cutting capital expenditure on Woodsmith, with this declining to $300 million in 2025 and then to zero in 2026, as Anglo American deleverages its balance sheet and looks for an investor/strategic partner to take an ownership stake (Fertilizer International 523, p32).
The decision to simplify Anglo American’s portfolio to just copper, iron ore and crop nutrients was triggered by a failed hostile takeover bid by BHP in May last year (Fertilizer International 523, p32). At the time, although crop nutrients were retained as one of the three “core pillars” of the business, the Woodsmith project was also described as having “optionality” by CEO Duncan Wanblad.
Project costs for this UK polyhalite mine are estimated to have tripled between 2017 and 2023, from $2.9 billion to around $9 billion (Fertilizer International 518, p9). Although investment has declined, around 1,100 people were still employed on the Woodsmith project, as of mid-2025, working on shaft sinking activities and carrying our critical studies.
Earlier this year, Anglo American set out three pre-conditions that would allow Woodsmith to proceed to a final investment decision (FID). These were only likely to be met in 2027 at the earliest, according to the company (Fertilizer International 528, p10).
Anglo Teck’s global headquarters will be located in Vancouver with corporate offices in London and Johannesburg. Named in key leadership roles are: Duncan Wanblad as CEO, Jonathan Price as Deputy CEO, and John Heasley as CFO, with Sheila Murray as Chair.
The merger is expected to complete in 12-18 months, subject to customary regulatory and completion conditions.
