Era coming to an end for Anglo American

Anglo American is nearing completion of its historic merger with Canadian mining giant Teck Resources, with regulatory approval from China being the last hurdle. 

This has not stopped the company from planning ahead for its merger, with CEO Duncan Wanblad saying its integration planning is well advanced. 

Anglo has also sold off some of its assets in preparation for the merger and is nearing a deal to sell De Beers to its former CEO for $1 billion (R16.7 billion). 

The mining giant, born in South Africa, revealed this progress in its interim results for the six months ended 30 June. 

Anglo had a strong six-month period. The company’s revenue rose by 11% while underlying earnings surged by 35%, thanks to soaring copper prices. 

It increased its dividend by 229% to 23 US cents per share, despite taking a knock from its discontinued operations. 

These discontinued operations are vital for the most radical overhaul in Anglo’s history since the Oppenheimers stepped away from running the company. 

Kickstarted by BHP’s efforts to buy Anglo, Wanblad began a process to greatly streamline the business and focus it on copper and other minerals of the future. 

Anglo has some of the best copper assets in the business in South America, and its merger with Teck will give the combined company six world-class copper mines. 

“We are unlocking the full potential of Anglo American – anchored in copper, premium iron ore, and crop nutrients,” Wanblad told shareholders. 

Wanblad outlined the progress the company has made int his regard. It completed the sale of its steelmaking coal business for $3.87 billion in cash and is nearing approval for the sale of its nickel business. 

Bloomberg reported that it is also close to completing the sale of De Beers to a consortium of investors, including former CEO Gareth Penny, for $1 billion. 

This follows the unbundling of Anglo American Platinum into a separate company called Valterra Platinum in May 2025. 

End of Anglo American as you know it

The disposal of some of Anglo’s most iconic businesses leaves the company looking vastly different to any previous iteration. 

Its only exposure to its home country of South Africa is through Kumba Iron Ore and, if all goes to plan, Anglo will have no diamond or platinum exposure in the coming months. 

This is necessary to reposition Anglo for the future and to leverage the scale it will have after it merges with Teck to create a premium copper mining business. 

Copper prices are expected to remain elevated for decades to come as companies invest in data centres and countries upgrade their electricity grids. 

Wanblad said the company’s strong performance and progress with its disposals stand it in good stead as it progresses with the merger to form Anglo Teck. 

“We continue to progress towards completion within our original September 2026 to March 2027 window, with anti-trust approval from China the final outstanding regulatory milestone,” he said. 

“Integration planning is well-advanced, ensuring that we will be ready to begin to realise the material value and synergies we have identified with Anglo Teck.”

Anglo estimates the merger will deliver annual pre-tax synergies of approximately $800 million by the fourth year after the transaction is completed. 

It expects to realise 80% of this value on an annual basis by the ned of the second year operating as a combined company. 

“On the back of our robust operational and financial performance in the first half of the year, we have every confidence that we are making the right choices,” Wanblad said. 

The merger with Teck will also see Anglo shift its headquarters out of London to Toronto, where Teck is based. 

This will move it further away from its birth in South Africa, with the move to London in 1999 marking the beginning of the company’s exit from the country. 

Over the past three decades, Anglo has reduced its presence in South Africa significantly. It has separated its coal assets into Thungela and Amplats into Valterra. 

After De Beers is sold, only Kumba remains as a South African asset and analysts speculate that if it receives a good offer for the company, Anglo will sell.