Say goodbye to South Africa’s most iconic company as you know it

Anglo American and Teck have received approval from the Government of Canada for their merger, which will create a Canadian-headquartered mining giant. 

This deal will further reduce Anglo’s presence in South Africa, the country which saw its birth and formation into the world’s premier mining company. 

Over the past three decades, the company’s South African presence has been steadily reduced, with it moving its headquarters and primary listing to London in 1999. 

It has also disposed of many of its South African assets more recently. Its coal assets have been separated into Thungela and Amplats into Valterra. Anglo is also looking to dispose of De Beers.  

This leaves Kumba Iron Ore as Anglo’s last major asset in South Africa, with the company now being a copper giant.

It is exactly this process of slimming down and focusing on copper that has made Anglo attractive to suitors, such as BHP and Teck. 

On 17 December, Anglo and Teck announced that they had received regulatory approval from the Government of Canada for the merger of equals between them. 

Anglo American and Teck believe that the formation of Anglo Teck in a merger of equals will provide exceptional and enduring benefits for Canada, founded upon establishing a global critical minerals champion headquartered in Canada.

“We are delighted to receive regulatory approval from the Government of Canada for our merger of equals with Teck,” Anglo CEO Duncan Wanblad said. 

“Today’s confirmation by Minister of Industry, the Honourable Mélanie Joly, marks yet another step towards forming a major global critical minerals powerhouse, following the overwhelming endorsement of both our and Teck’s shareholders last week.” 

Anglo Teck represents a significant investment in Canada, its people and its natural resources, underpinned by a comprehensive package of commitments designed to drive enduring economic and wider benefits.”

Wanblad has repeatedly said that this deal would not affect Anglo’s commitment to South Africa, its historic home.  

“We are all committed to preserving and building on the proud heritage of both companies, in Canada, as home to Anglo Teck’s global headquarters, in South Africa, where our commitment to investment and national priorities endures, and across our entire global operational and commercial footprint.”

Anglo Teck will hold an industry-leading portfolio of producing operations, including six world-class copper assets, alongside high-quality premium iron ore and zinc businesses.

Anglo Teck will be one of the world’s largest copper producers, benefiting from some of the world’s highest-quality copper endowments. 

The company will also leverage major brownfield and greenfield copper development projects located in attractive and well-established mining jurisdictions, further expanding its business.

The merger is expected to deliver annual pre-tax synergies of approximately US$800 million by the end of the fourth year following completion of the transaction, with approximately 80% expected to be realised on a run rate basis by the end of the second year.