Anglo American Plc is in advanced talks to acquire Canada’s Teck Resources Ltd., in what could become the largest mining deal in more than a decade, just over a year after Anglo itself faced a takeover bid, according to Bloomberg.
Sources familiar with the matter, who spoke on condition of anonymity, indicated that the companies could announce a transaction as early as this week. Teck shares surged more than 20% in post-market trading in New York following the news.
If completed, the combination of Anglo and Teck would rank among the biggest mergers in the mining sector, highlighting a renewed wave of dealmaking among major players. Teck Resources’ shares have fallen roughly 20% in Toronto over the past year, giving it a market value of approximately C$23.7 billion ($17.1 billion), while Anglo American shares have risen 15% in London to a market value of £26.9 billion ($36.4 billion).
According to Bloomberg, Anglo is considering paying mostly in stock, although the timing and structure of the deal remain subject to change. Negotiations could still fail to result in an agreement. Both companies declined to comment publicly.
In recent years, both miners have attracted acquisition interest from larger rivals. Anglo fended off a $49 billion approach from BHP Group last year, while Glencore Plc attempted, but failed, to acquire Teck in 2023. These high-profile moves have fueled industry-wide interest in expanding copper production—a key component of the global energy transition—while also sparking fears of being left behind in the consolidation wave.
A merger between Anglo and Teck would mark the first major successful deal in the sector in recent years. Historically, mining executives have been cautious to avoid overpaying after a series of costly takeovers during the China-driven commodity super cycle.
Both companies have recently sought to streamline operations. Teck sold a majority stake in its coal business to Glencore, while Anglo has exited platinum mining and is in the process of divesting coal mines and its De Beers diamond unit. For Anglo, acquiring Teck could reduce vulnerability to future takeover attempts.
Teck, controlled by the founding Keevil family through supervoting shares and with China Investment Corp. as its largest shareholder, has long been a target for major miners due to its attractive copper assets, Bloomberg reported previously. Any deal would require approval from the Canadian government, which has signaled that foreign acquisitions of critical mineral producers would only be allowed under exceptional circumstances.
The potential merger could also bring operational efficiencies. Teck’s flagship Quebrada Blanca 2 copper project in Chile sits adjacent to Anglo’s Collahuasi mine, providing opportunities to increase production and profitability.
Both companies, however, face challenges. Teck recently began a review of the QB2 operation after years of setbacks, while Anglo struggles to finalize the sale of its coal mines and De Beers diamonds amid market difficulties.
If successful, the deal would represent a milestone in mining consolidation and could prompt other rivals to consider strategic moves in the copper sector, a metal increasingly seen as vital to the global transition to clean energy.
