===Teck Resources (TECK) and Anglo American (NGLOY) to combine through merger of equals

 

Teck Resources and Anglo American (NGLOY) to combine through merger of equals 

• Teck Resources (TECK) and Anglo American plc (NGLOY) announce they have reached an agreement to combine the two companies in a merger of equals to form the Anglo Teck group, a global critical minerals champion and top five global copper producer, headquartered in Canada and expected to offer investors more than 70% exposure to copper.
• Both Anglo American and Teck believe the Merger will be highly attractive for both companies' shareholders and stakeholders, enhancing portfolio quality, resilience and strategic positioning. Bringing together the strengths of both companies, Anglo Teck will leverage proven capabilities in technical and operational excellence, sustainability, product marketing and project execution to deliver significant, value-accretive growth through the cycle.
• Highlights
  • $800 million in pre-tax recurring annual synergies from combining both companies
  • Additional $1.4 billion (100% basis) annual average underlying EBITDA uplift expected from synergies between the adjacent Collahuasi and Quebrada Blanca operations on an average pre-tax annual basis from 2030 - 2049, which is expected to result in an increase of c.175,000 tonnes of potential additional annual copper production
  • Special dividend to Anglo American shareholders of $4.5 billion c.US$4.19 per share ahead of completion
  • Anglo American shareholders to own c.62.4% and Teck shareholders to own c.37.6% of Anglo Teck plc immediately post completion
  • Merger subject to customary closing and regulatory conditions, expected to complete within 12-18 months