Anglo American and Teck Resources today announced a planned merger valued at $53 billion, a move that could significantly reshape the global mining sector. The proposed combination is expected to create a new mining giant focused on critical minerals.
According to J.P. Morgan analysts, the combined company would have a pro forma market capitalization of approximately $56 billion and is projected to achieve targeted annual pre-tax synergies of $2.2 billion. These synergies are estimated to have a net present value of $7 to $8 billion.
The deal is structured as a share swap, with Anglo American shareholders receiving 1.3301 Anglo shares for each Teck share. Upon completion, Anglo shareholders are expected to own 62% of the new group, which would be headquartered in Vancouver and listed on major exchanges including London, Toronto, Johannesburg, and New York. Copper is anticipated to constitute 66% of the combined entity's 2027 EBITDA, potentially rising to 72% if coal and diamond assets are divested.
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