Chile hails copper merger as strategic victory

THE £53bn merger between Anglo American and Teck Resources represents a union of assets with “extraordinary value,” according to Chile’s state copper producer Codelco.“Chile is consolidating with this agreement a global strategic leadership in copper,” Maximo Pacheco, Codelco’s chairman, told Reuters on Tuesday following the merger announcement.The London-listed Anglo American and Canada’s Teck Resources revealed their tie-up earlier on Tuesday, marking the largest mining sector M&A deal in over a decade.Anglo American operates the Collahuasi mine whilst Teck runs the neighbouring Quebrada Blanca facility, both located in Chile’s northern copper-rich regions. The proximity of these assets is expected to deliver substantial cost savings and operational efficiencies for the combined entity.Chile, which produces approximately 28% of the world’s copper, views the merger as reinforcing its position as the global leader in the critical metal. Copper demand continues to surge driven by the energy transition, electric vehicle production, and expanding data centre infrastructure.In terms of the proposed merger, Anglo American will issue 1.33 ordinary shares to each Teck share held in both outstanding Teck class A common shares and class B subordinate voting shares in terms of which Anglo will own 62.4% and Teck shareholders 37.6% of Anglo Teck.Critically, the merger has the support of Teck’s Keevil family which wields the A class voting shares – fundamental in blocking Glencore’s takeover attempt of Teck two years ago. Teck’s controlling shareholder Norm Keevil backed the deal, calling it a “powerful next chapter” for the company built by his family.The logic for the deal is the fact the combined entity will have 70% of its production in copper, a metal tipped to run into major supply deficits in the years ahead. Anglo American produced 770,000 tons of the metal last year while Teck is set to produce up to 525,000 tons this year.The post Chile hails copper merger as strategic victory appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com