Anglo American, Teck shareholders approve $53B merger

Shareholders of Anglo American (LON: AAL) and Teck Resources (TSX: TECK.A/TECK.B) have approved their proposed merger at companies’ respective general meetings on Tuesday.

The all-stock $53 billion transaction, first announced in September, creates a major global copper heavyweight to move to the next step of seeking approvals from regulators across the world, including Canada.

The combination of Anglo’s Collahuasi and Teck’s Quebrada Blanca could yield over one million tonnes of copper a year by the early 2030s and could surpass BHP’s massive Escondida mine, according to analysts.

The approval comes after Anglo dropped a proposal to change executive bonus awards from the agenda of Tuesday’s shareholder vote after investors objected to the plan. The UK-based miner noted the incentive plan was meant to support the deal and help retain senior leaders as the merger would shift the company’s headquarters to Canada.

Last month, rival miner BHP (ASX: BHP) had made another attempt to buy Anglo in the lead-up to the merger vote, before abandoning its offer three days later.

Anglo has long been seen as a takeover target thanks to its copper portfolio, though its diamonds and platinum businesses have complicated past bids.

Both companies have undergone significant restructuring in recent years, driven in part by previous takeover attempts.

“We are delighted with the clear endorsement from our shareholders to take this next strategic step to unlock outstanding value as Anglo Teck,” Anglo American CEO Duncan Wanblad said in a news release. 

“Together, we will form a global critical minerals champion, headquartered in Canada, and offering more than 70% exposure to copper, underpinned by a world-class portfolio of assets with exceptional growth optionality,” Wanblad said.