Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks Stock plan guidance
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Anglo American, Teck agree merger to create copper giant
(Sharecast News) - Anglo American and Canada's Teck Resources on Tuesday said they had agreed a merger "of equals" expected to create a group worth $53m with large copper operations.
In a joint statement, the two miners said the deal was expected to produce annual synergy savings of $800m at the end of the fourth year after completion, with around $60m expected to come from the board and head office to remove "de-duplication - usually corporate code for job cuts.
The new company will be headquartered in Vancouver - putting hundreds of staff who work in Anglo's London office at risk of redundancy.
London-listed Anglo will own about 62.4% of the new entity - to be called Anglo Teck - and Teck investors 37.6%, they added. Anglo's chief executive, Duncan Wanblad, will remain CEO, while Teck's Jonathan Price will serve as his deputy.
The two companies operate adjacent copper mines in Chile - Quebrada Blanca and Collahuasi - which are expected to deliver a $1.4bn boost in annual average underlying core earnings from synergies between 2030-20493, which is expected to result in an increase of 175,000 tonnes of potential additional annual copper production.
Anglo American will pay its shareholders a $4.5bn special dividend, or $4.19 a share, before the deal completes.
Both companies had been takeover targets themselves. Anglo rejected a £39bn takeover proposal from BHP last year, while Teck spurned a $16.6bn buyout offer from Glencore in 2023.
AJ Bell investment director Russ Mould said: "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."
"One minute Anglo was fighting off bid interest from BHP, leading to a radical restructuring to show investors it was fit for the future; the next it is swooping on a business that arch-rival Glencore tried and failed to buy."
Reporting by Frank Prenesti for Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
