"London-listed miner Anglo American and Canada's Teck Resources plan to merge, marking the sector's second-biggest mergers and acquisitions deal ever and forging a new global copper-focused heavyweight. Under the proposed deal, which will require regulatory approvals and was announced on Tuesday, Anglo American shareholders will own 62.4 percent of the new company, Anglo Teck, while shareholders in Teck would hold 37.6 percent."
"The deal to form the world's fifth-largest copper company is also a big bet on copper by Anglo. Glencore's $90bn merger with Xstrata in 2013 remains the largest mining deal in history. Copper, used in the power and construction sectors, is set to benefit from burgeoning demand spurred by electric vehicles and artificial intelligence. Miners have raced to develop new projects, and there has been a flurry of takeover bids, though no major acquisition has so far succeeded."
Anglo American and Teck Resources plan to merge to form Anglo Teck, with Anglo shareholders holding 62.4% and Teck shareholders 37.6%. Anglo Teck will be headquartered in Canada with a primary stock listing in London and a combined market capitalisation exceeding $53bn. The transaction could take up to 18 months to close pending regulatory approvals. The merger targets becoming the world's fifth-largest copper company and reflects a strategic bet on rising copper demand from electric vehicles and artificial intelligence. Both firms underwent recent restructurings and faced takeover attempts; Teck says any bidding war outcome is beyond its control while focusing on approvals.
Read at www.aljazeera.com
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