12:09 PM EDT, 09/09/2025 (MT Newswires) -- (Updates shares and adds detail)

Teck Resources (TECK-A.TO, TECK-B.TO, TECK) and Anglo American said Tuesday they will combine in what they termed a "merger of equals" to form Anglo Teck, a Vancouver-headquartered copper company.

The combined group will be a top-five global copper producer, with more than 70% exposure to copper, the companies said.

Its portfolio will include six producing copper assets, along with iron ore and zinc businesses, and development projects in established mining jurisdictions. The combined company will also keep exposure to its broader portfolio, including iron ore, zinc and crop nutrients

The companies expect the merger to generate about $800 million in annual pre-tax synergies by the end of the fourth year, with 80% realized within two years.

They also forecast $1.4 billion in average annual pre-tax EBITDA revenue synergies from 2030 to 2049, primarily through integration of the Collahuasi and Quebrada Blanca operations.

Under the agreement, Anglo American will issue 1.3301 shares for each Teck class A and class B share. Ahead of completion, Anglo American plans to pay a special dividend of $4.5 billion, or about $4.19 a share, to its shareholders.

On closing, Anglo American and Teck shareholders will own about 62.4% and 37.6% of Anglo Teck, respectively. Anglo American's Duncan Wanblad will serve as chief executive officer with Teck chief executive Jonathan Price as deputy CEO, John Heasley as chief financial officer, and Sheila Murray as chair.

The boards of both companies unanimously recommend the merger to shareholders.

Teck's Class B shares were last seen up $7.16, or 15%. to $55.66 on the Toronto Stock Exchange.

Price: 55.79, Change: +7.29, Percent Change: +15.03