(Reuters) -London-listed Anglo American and Canada’s Teck Resources will merge in a $53 billion deal, the companies said on Tuesday, the biggest mining tie-up in more than a decade.
The new company, Anglo Teck, will be based in Canada with a primary listing in London, the firms said.
RUSS MOULD, INVESTMENT DIRECTOR AT AJ BELL ON ANGLO AMERICAN
“Anglo American has turned from prey to predator. The deal to buy Teck Resources, if it completes, means Anglo has not only pulled itself out of a hole, but also sends a message to mining peers that it is not a pushover.
Combining with Teck will give Anglo greater scale in copper, a commodity in strong demand thanks to its key role in the transition to clean energy.
The deal is a win for the UK stock market as the enlarged Anglo Teck group will have its primary listing in London. Anglo clearly believes the UK works well as a listing venue and that sends a positive message to other businesses undergoing M&A.”
J.P.MORGAN ANALYST DOMINIC O’KANE
“Nil premium merger of equals is strategically excellent for Anglo…we expect that if this merger is completed, iron ore could eventually be divested or demerged to create a copper pure-play.
We expect that the takeover appeal of the pro-forma entity will be enhanced as a direct result of this combination, due to the consolidation of the Collahuasi-Quebrada portfolio into a world-class copper project.
In addition, this transaction should eliminate the complexity of Teck’s dual share class structure, including the veto potential held through its Class B shares.”
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
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