Anglo American Nears Deal to Buy Teck Resources
Anglo American, the London-based mining powerhouse, is reportedly close to striking a major deal to acquire Teck Resources, one of Canada’s most prominent mining companies. According to recent reports, the transaction is expected to be largely stock-based, though neither company has publicly confirmed the negotiations. Still, the timing seems to be significant, with Anglo looking stronger after restructuring its business, and Teck facing challenges that have weighed down its share price.
Now, to understand why this is such a big deal, let’s look at the backdrop. Anglo American has been on a strategic path to reshape its operations. After fending off a massive takeover bid from BHP Group last year—worth more than 49 billion U.S. dollars—Anglo decided to slim down its portfolio. The company sold off assets in nickel, platinum group metals, and parts of its coal business. Investors responded positively, and its stock performance reflected that confidence.
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Teck, on the other hand, has had a tougher year. Its QB2 copper mine in Chile, a flagship project, has underperformed, dragging down overall results. The company also has strong assets, including the Highland Valley copper mine and the Red Dog zinc mine in Alaska, which is among the largest zinc operations in the world. But the struggles at QB2 have left the Canadian miner vulnerable.
If this deal goes through, it wouldn’t just be about buying a company—it would be about creating synergies. Anglo already owns a significant stake in the Collahuasi copper operation, which sits right next to Teck’s QB2 mine in Chile. Analysts believe that merging those operations could unlock billions of dollars in cost savings by running them as one large facility. Even Teck’s CEO, Jonathan Price, has acknowledged the potential benefits of such a tie-up.
But there are hurdles. Any foreign takeover of a major Canadian mining firm—especially one involved in critical minerals like copper and zinc—would be closely scrutinized by Ottawa. In fact, the Canadian government has said that acquisitions of large mineral producers would only be allowed under “exceptional circumstances.” On top of that, Teck is still heavily influenced by the Keevil family, which controls the company’s high-voting Class A shares. Their approval would be absolutely essential before any deal could go forward.
This is not the first time Teck has faced outside interest. Just last year, Glencore attempted to buy all of Teck’s operations. That plan was rejected, though Teck eventually agreed to sell its coal business to Glencore while keeping its copper and zinc assets intact. The fact that Teck has once again attracted attention highlights just how valuable its portfolio is in a world hungry for copper and other critical resources.
So, while nothing is official yet, the pieces are moving quickly. If Anglo and Teck do finalize an agreement, it could reshape the global mining landscape—creating one of the most powerful copper and zinc players in the industry. And as always with deals of this size, governments, shareholders, and industry leaders will be watching every move closely.
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