Anglo American to relocate headquarters to Canada after £40 billion merger with Teck Resources

Anglo American will move its headquarters out of London after agreeing a £40 billion merger with Canadian miner Teck Resources that will create one of the world’s largest copper producers, the companies said.

Under the terms of the deal announced Monday, the combined group — to be called Anglo Teck — will be based in Vancouver while maintaining its primary share listing on the London Stock Exchange. Anglo American shareholders will own 62.4% of the new company and Teck shareholders 37.6%. Anglo will pay a special dividend of $4.19 a share, a total of about $4.5 billion (roughly £3.3 billion), and Anglo American shares rose 9.1% in London trading.

Duncan Wanblad, Anglo American’s chief executive, will lead the combined business and Teck’s Jonathan Price will become deputy chief executive. Wanblad said the merger brings together “two highly regarded mining companies whose portfolios and capabilities are deeply complementary.” The companies said they expect the union to generate around £600 million of annual cost savings and efficiency gains four years after completion.

The deal, the second-largest in the mining sector since the 2013 Glencore-Xstrata tie-up, creates the world’s fifth-largest copper producer. The merged group will operate adjacent Chilean assets including the Quebrada Blanca and Collahuasi mines. Copper is widely used in power generation and construction, and is forecast to see rising demand from electric vehicles and expanding data-centre infrastructure supporting artificial intelligence.

The merger follows a period of strategic change at Anglo American. The company, which last year rebuffed a £39 billion approach from BHP, has been reshaping its portfolio under Wanblad, divesting its nickel and platinum businesses and entering talks to sell De Beers. A proposed £2.8 billion sale of its steelmaking coal business collapsed last month.

Market reaction was broadly positive among major institutional shareholders. Legal & General, the Church of England Pensions Board, Aberdeen and asset manager Ninety One were among investors who welcomed the plans. Adam Matthews of the Church of England Pensions Board described the transaction as “a consolidation that makes sense and brings complementary cultures together.” George Cheveley, a fund manager at Ninety One, called it “a deal that makes a lot of sense.”

Analysts said the special dividend improved the near-term outlook for Anglo American investors. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the payout “sweetens the near-term picture.” Some analysts also flagged the possibility of rival suitors returning. Berenberg said Glencore and BHP could mount counteroffers, and market commentator Chris Beauchamp of IG noted the merger reflects two frequent takeover targets seeking refuge in a tie-up.

The combination comes amid a wider push by miners to secure copper resources as manufacturers and infrastructure projects pivot toward electrification. Large-scale consolidation in the sector has met regulatory and financing hurdles in the past, and some proposed deals have collapsed. Teck rejected a £17 billion takeover approach from Glencore in 2023.

The companies did not provide a specific timetable for regulatory clearances and completion. They said the boards of both firms had approved the transaction and that shareholder backing had been received, but the merger remains subject to customary approvals. Management said it was committed to preserving the heritage of both firms while integrating operations to capture synergies.

Investors and industry watchers will also be watching whether the shift of Anglo Teck’s headquarters to Vancouver prompts political or regulatory scrutiny in the U.K. and other jurisdictions, and whether it triggers further consolidation in the copper market as companies seek scale to meet demand from emerging technologies and infrastructure sectors.