Anglo American to move HQ to Vancouver after £40bn merger with Teck Resources

Anglo American will move its headquarters out of London and base the combined company in Vancouver after agreeing a £40 billion merger with Canadian miner Teck Resources, the companies announced Tuesday. The transaction, which preserves Anglo American’s primary share listing on the London Stock Exchange, creates one of the world’s largest copper producers.

Under the terms of the deal, Anglo American shareholders will own 62.4% of the combined group, with Teck shareholders holding 37.6%. Anglo shareholders will receive a special dividend of $4.19 per share, a payment the companies said totals about $4.5 billion (£3.3 billion). Anglo American’s shares rose 9.1% in London on the news.

Duncan Wanblad, Anglo American’s chief executive, will lead the merged group, to be called Anglo Teck, with Teck’s Jonathan Price as his deputy. The companies said the transaction is expected to generate about £600 million in annual cost savings and efficiency gains four years after completion.

The union brings together copper operations including Chilean mines Quebrada Blanca and Collahuasi, and creates what the companies described as the world’s fifth-largest copper company. Copper is widely used in power and construction sectors and is expected to benefit from growing demand related to electric vehicles and data centres supporting artificial intelligence.

The deal ranks as the second-largest tie-up in the mining sector since the 2013 Glencore–Xstrata merger, which was valued at about £66 billion. It follows a period of major corporate activity for Anglo American: the company last year fended off a £39 billion takeover bid from BHP, has sold its nickel and platinum businesses, and has been pursuing other restructuring options.

Investor reaction cited by the companies was broadly positive. Institutional investors including Legal & General, the Church of England Pensions Board, Aberdeen and asset manager Ninety One welcomed the deal. Adam Matthews of the Church of England Pensions Board said the move was "a consolidation that makes sense and brings complementary cultures together." George Cheveley, a fund manager at Ninety One, described the deal as one that "makes a lot of sense."

Analysts highlighted that the tie-up could prompt rival suitors to return. Berenberg analysts flagged the possibility of counteroffers from Glencore and BHP, and Chris Beauchamp, chief market analyst at IG, said the transaction showed two companies that had been bid targets choosing to "find refuge in each other’s arms." Teck had previously rejected a takeover approach from Glencore in 2023.

Anglo American said the combined company will maintain its primary listing in London even as its headquarters move to Vancouver. The firms did not provide a specific timetable for regulatory clearances or the transaction’s closing date in their announcement.

The deal also comes as Anglo American moves closer to selling De Beers, its historic diamond business. Insiders said interest from trade buyers and private equity has been strong and that a sale is more likely than a stock market flotation. Anglo put De Beers up for sale as part of the broader restructuring that followed the BHP approach.

Industry commentators noted that miners are racing to secure copper assets as demand projections from electrification and digital infrastructure lift expectations for the metal. However, previous attempts at consolidation in the sector have sometimes failed to reach agreement or clear regulatory hurdles.

The companies said they remain committed to preserving the heritage of both groups and to integrating complementary portfolios and capabilities. They expect the combined business to be better positioned to capitalise on long-term copper demand, subject to customary shareholder approvals and regulatory consents.