Copper giant Anglo Teck: a new $50 billion merger could reshape the global metals market
9 September 17:23
The global non-ferrous metals market has gained a new leader. Two leading companies – Anglo American and Teck Resources – have agreed to merge, creating an industrial giant with a capitalization of more than $50 billion. This was reported by the Financial Times, "Komersant Ukrainian" reports.
The merger, which has already been dubbed the “deal of the decade,” aims to change the balance of power in global copper mining, a critical resource for the green economy, electric vehicles, and digital technologies.
The deal of the century in the mining industry
- Anglo American and Teck Resources have agreed to merge, creating a new company with a capitalization of about $50 billion.
- Anglo will retain a controlling stake of 62.4%, while Teck shareholders will receive the rest.
- The new player is called Anglo Teck and will be registered in Vancouver.
The geopolitical dimension
- This is another blow for the UK: after BHP leaves London in 2022, another giant will partially “leave” British jurisdiction.
- However, the main stock exchange listing will remain in London, with additional listings in Johannesburg, Toronto, and New York.
- Anglo CEO Duncan Vanblad will lead the company, and Teck CEO Jonathan Price will be his deputy.
Strategy: focus on copper
- Anglo produced 770 thousand tons of copper in 2024.
- Teck plans to produce 525 thousand tons this year and has announced ambitious production growth by the end of the decade.
- Both companies already operate in Chile at the Collahuasi and Quebrada Blanca deposits, which will now be consolidated.
- Following the announcement of the deal, Anglo’s shares rose 5% on the London Stock Exchange.
Context and challenges
- The deal became possible after unsuccessful attempts to take over both companies by competitors.
- In particular, BHP Group offered $39 billion for Anglo in 2024 but was rejected.
- The market expects that the Anglo-Teck deal will be subject to regulatory review, which could take 12-18 months.
Possible implications for Ukraine
Demand for Ukrainian metallurgy
Although Ukraine is not a major copper producer, the increased demand for non-ferrous metals is driving overall growth in investment in metallurgy and related industries. This could open up new niches for Ukrainian companies in the supply chain.
Infrastructure opportunities
Ukraine can become a transit platform for the transportation of strategic resources if it integrates into new logistics routes between the EU and global markets.
Technological prospects
Given Europe’s transition to a green economy, Ukrainian companies can integrate into projects to produce components for electric vehicles and renewable energy that use copper.
Investment Signal
The merger of Anglo and Teck may draw investors’ attention to other commodity markets. Ukraine, which has significant deposits of iron ore, titanium, and lithium, could potentially receive a new investment boost.
What experts say
Bloomberg analysts note that the merger of Anglo American and Teck Resources is a response to the global copper shortage. Demand for the metal is growing amid the development of electric transport and green energy, where copper is used in large volumes.
“This is a deal that shapes the new architecture of the copper market. Anglo Teck will become a key supplier to the US, EU and Asia, effectively creating a new global ‘arbiter’ in pricing policy,” said Citi Group economist James Harper.
Energy transition
Experts from the International Energy Agency (IEA) remind that by 2030, the demand for copper may increase by 40-50%, as it is the “circulatory system” of the energy transition: from wind turbines to electric vehicles.
“The merger of companies of the scale of Anglo and Teck is a bet on the inevitable acceleration of the green economy,” said Caroline Dupont, Senior Advisor at the IEA.
Ukrainian context
Ukrainian economists emphasize that this deal may have indirect consequences for our country as well.
- Dragon Capital investment analyst Sergiy Fursa notes: “When global players invest billions in resource extraction, it is a signal to the markets that raw materials will remain a key asset. For Ukraine, this means the prospects of attracting capital in the iron ore, lithium and titanium sectors.”
- CASE Ukraine economist Maria Repko adds: “Against the backdrop of rising global metal prices, Ukraine can strengthen its negotiating position on industrial recovery and integration into European supply chains.”
The global copper market is growing rapidly due to the development of green energy, electric vehicles and digital infrastructure.
Analysts predict that demand for copper will double by 2035, while the pace of new deposits discovery remains low.
According to the World Bank, by 2050, to achieve the decarbonization goals, humanity will need almost twice as much copper as has been mined over the past 5,000 years.
High demand and shortages make the merger of Anglo and Teck not only a business deal but also a strategic factor in the global economy and geopolitics.
