The combined company will be headquartered in Vancouver, with its shares listed in London. In Chile, it will merge the Collahuasi and Quebrada Blanca operations.
Shareholders of Anglo American plc and Teck Resources voted to approve the merger of the two companies, taking a key step toward the creation of a US$50.0 billion metals producer focused on copper mining assets in Chile—where it will combine the Collahuasi and Quebrada Blanca mines—and Peru, Chilean business publication Diario Financiero reported.
Teck’s Class B shareholders approved the deal at a meeting in Vancouver, minutes after Anglo American investors in London voted to approve the merger with 99.2% in favor.
The votes advance a transaction that would rank among the largest in the history of the mining industry.
The agreement to acquire Teck, finalized three months ago, gives Anglo American access to the Canadian company’s portfolio of copper mines at a time when copper prices are trading at record highs.
At the time of its announcement on September 9, the transaction was valued at approximately US$50.0 billion, based on the combined market capitalization of the two companies.
Highly sought-after assets
According to Diario Financiero, Teck’s copper assets have long been coveted by major mining companies. However, its flagship Quebrada Blanca mine in northern Chile has faced operational issues, raising questions about its ability to continue as a standalone operation. Anglo American holds a 44% stake in the neighboring Collahuasi copper mine.
Anglo American’s copper business has also attracted interest from competitors. The London-based company has twice rejected takeover proposals from BHP Group, the world’s largest mining company.
Under the agreed terms, Anglo American will pay 1.3301 shares for each Teck share, in a deal both companies described as a nil-premium merger. The merged company will be called Anglo Teck, with its global headquarters in Vancouver, while maintaining its primary stock market listing in London.
What’s next for Anglo American and Teck?
The deal still requires approval from regulators in countries including China, the United States, and Canada.
Canada’s federal government is pressing Anglo American to make stronger commitments regarding executive and management roles in the proposed Vancouver headquarters as a condition for approval. The companies must demonstrate that the transaction will benefit Canada in order to secure government backing.
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