Anglo-American Resources Group and Tech Resources announce merger to form Anglo-American Tech

Anglo American Resources Group and Teck Resources Company announced a merger of equals to establish a new global critical minerals company, Anglo American Resources Group. This merger is expected to make Anglo American Resources Group one of the top five copper producers globally, offering investors over 70% copper investment opportunities. The merger will be implemented through a scheme of arrangement, with Anglo American Resources Group issuing 1.3301 ordinary shares to Teck Resources' existing shareholders in exchange for each outstanding share of Teck Resources Class A common shares and Class B subordinate voting shares. After the merger, Anglo American Resources Group and Teck Resources shareholders will respectively hold approximately 62.4% and 37.6% of Anglo American Teck Resources. It is expected that by the fourth year after completion, the merger will generate about $800 million (GBP 588.93 million) in pre-tax synergies annually.

The new company will also set a target to achieve $1.4 billion in EBITDA (earnings before interest, taxes, depreciation, and amortization) revenue synergies annually between 2030 and 2049, focusing on optimizing the value of adjacent assets in Koyawasi and Cufrada Blanca. Additionally, Anglo American Resources Group plans to distribute a special dividend of $4.5 billion to shareholders before the merger is completed, aiming to create an efficient balance sheet and equitable value distribution for shareholders of both companies. Duncan Wamblad, CEO of Anglo American Resources Group, stated: "We are unlocking exceptional value in both the short and long term to build a global critical minerals champion, continuing the long-standing focus, agility, capabilities, and culture of both companies. We have a unique opportunity to integrate two highly respected mining companies whose portfolios and capabilities are highly complementary and who share common values."

Anglo American Resources Group will leverage the strengths of both companies across all aspects of mining operations. The merged entity will possess an industry-leading portfolio, including six world-class copper assets as well as high-quality iron ore and zinc businesses. Anglo American Resources Group will have a presence in global capital markets, planning listings on the London, South Africa, Toronto, and New York stock exchanges. The merger will establish Anglo American Resources Group's global headquarters in Vancouver, but the merger remains subject to customary conditions and approvals, including the Canadian Investment Act. Jonathan Price, CEO of Teck, said: "The merger of two highly complementary portfolios will create a globally leading critical minerals champion headquartered in Canada—one of the top five copper producers worldwide—with outstanding mining and processing assets in Canada, the United States, Latin America, and Southern Africa. This is a natural evolution of our strategy and portfolio streamlining, and it is the result of this strategy and streamlining that has laid the foundation for such a transformative transaction. Integrating our world-class copper assets, premium iron ore and zinc businesses, and a range of excellent high-quality growth projects will bring tremendous resilience and optionality."

Ardea Partners and BMO Capital Markets serve as financial advisors to Teck. Teck's legal advisors include Wachtell, Lipton, Rosen & Katz, Stikeman Elliott, and Freshfields, with Felesky Flynn acting as legal tax advisor. Anglo American Resources Group's financial advisors include Centerview Partners, Morgan Stanley, Goldman Sachs, and RBC Capital Markets. Legal advisors are Latham & Watkins, Torys, and Webber Wentzel law firms.