Did Anglo American Bounce Into Its New Merger?

In the second largest merger and acquisition deal ever made in the mining space, London-listed Anglo American and Canada’s Teck Resources announced a planned merger into a new company to be known as Anglo Teck.

The deal, which will require regulatory approvals, will entitle Anglo American shareholders to 62.4% and Teck shareholders 37.6% ownership.

Anglo Teck, which would be based in Vancouver, B.C., would begin with a combined market capitalization exceeding $53 billion. A Teck Resources press release says the “merger of equals” will offer more than 70% copper exposure at the outset, with “outstanding further growth” optionality embedded.