Johannesburg-born 108-year-old Anglo American Plc, a diversified global mining company, has received Canadian regulatory approval to merge with Canada’s Teck Resources Ltd., creating a $69 billion mining powerhouse and one of the largest transactions on record.
- Anglo American Plc, founded in South Africa, announced a merger with Canada’s Teck Resources Ltd., forming a $69 billion mining enterprise.
- The combined entity, Anglo Teck, will be headquartered in Vancouver, with operational offices in Johannesburg and London.
- The merger enhances the firm’s focus on essential minerals, aligning with trends for cleaner energy and electric vehicles.
- Anglo American’s legacy includes significant contributions to South Africa’s industrial development and a gradual transition to global operations.
The merger, announced on Sept. 8 and approved by shareholders on Dec. 9, will create Anglo Teck, headquartered in Vancouver with corporate offices in Johannesburg and London.
The deal, valued at $69 billion, marks a major transformation for the 108-year-old South African mining company and is one of the largest mining transactions on record. It is also the second-largest merger in African corporate history, after the $107 billion combination of AB InBev and SABMiller in 2016.
A South African Legacy
Founded by Ernest Oppenheimer with British and American backing, Anglo American expanded from gold in Johannesburg to diamonds, coal, iron ore, and other minerals.
Over the decades, the Oppenheimer family gradually reduced its stake, including the sale of De Beers in 2011 for $5.1 billion, signaling the transition of a historically South African mining powerhouse into a globally headquartered entity.
Challenges in South Africa
In recent years, Anglo American has scaled back its South African operations due to rising costs, inconsistent government policies, and infrastructure challenges, including the near-collapse of the electricity grid.
Meanwhile, the current business climate has opened opportunities for smaller, artisanal, and local miners, particularly black South African operators, increasing competition for resources and market share within the country’s mining sector.
Consequently, these domestic pressures, coupled with global shifts away from coal and platinum, have reduced the company’s footprint in South Africa to a fraction of its former size. Its remaining operations now include Kumba Iron Ore, following the unbundling of Anglo American Platinum earlier this year.
Despite the downsizing, Anglo American continues to maintain strong ties to South Africa, pledging to uphold commitments to the country’s economy and national priorities. The company emphasizes board and executive representation from South Africa and ongoing investments in operations and local communities.
Global Competitors and Market Impact
The merger positions Anglo Teck as one of the largest mining companies in the world, with a strong portfolio in copper, zinc, coal, and iron ore.
It will compete with other global diversified mining giants such as BHP Group, Rio Tinto, Vale S.A., and Glencore, as well as major Chinese mining projects in Africa, including the Simandou iron ore development.
In a statement, Teck Resources’ CEO, Jonathan Price said, “Canada – and British Columbia – are recognized as strong mining jurisdictions with strategies to attract investment and growth in responsible mining. Establishing Anglo Teck in Vancouver aligns with government priorities and will help elevate Canada’s role on the global stage, creating benefits for communities, Indigenous Peoples, employees, and all stakeholders.”
Regulatory Approvals and Listings
The “merger of equals” represents a strategic shift for Anglo American, which has gradually reduced its South African operations to concentrate on critical minerals, including copper, in response to rising global demand for cleaner energy and electric vehicles.
The deal has already secured competition approvals in Canada and Australia, with additional regulatory reviews ongoing. Once completed, Anglo Teck will be listed on the London Stock Exchange, with secondary listings in Johannesburg, Toronto, and New York.
