Anglo American’s $53 billion tie-up with Teck heralds a new copper powerhouse

London-listed miner Anglo American has agreed to merge with Canada’s Teck Resources in a landmark $53 billion deal forming Anglo Teck, aiming to capitalise on copper demand and promise substantial synergies. The move drew mixed reactions in the UK amid concerns over the new entity’s Canadian headquarters.

Anglo American and Vancouver-based Teck Resources announced on Tuesday that they had reached agreement on an all-share merger, creating one of the world’s largest diversified miners. The new entity, Anglo Teck, will be headquartered in Canada but retain its primary listing on the London Stock Exchange. Anglo American shareholders will hold 62.4% of the group, with Teck shareholders owning 37.6%.

The companies said the deal would generate $800 million in annual operational synergies by its fourth year. It will also simplify Teck’s governance by eliminating its dual-class share structure. Duncan Wanblad, chief executive of Anglo American, will lead the merged business, while Teck’s chief executive, Jonathan Price, will become deputy CEO.

Russ Mould, Investment Director at AJ Bell, described the transaction as “a strategic shift from target to acquirer for Anglo American,” adding that the scale of the deal “positions the group to benefit from long-term copper demand.”

Copper is central to the transaction. Both companies are betting on surging demand for the metal, which underpins technologies from electric vehicles to data centres and AI infrastructure. The combined entity’s copper production is expected to rival industry leaders BHP and Rio Tinto, with investors welcoming the potential for a new global competitor.

Market reaction was immediate. Anglo American’s shares jumped nearly 10% in London, while Teck’s Frankfurt-listed stock climbed more than 20%. The gains helped lift the FTSE 100, with miners leading the index higher.

The merger, however, has not been universally applauded. UK political figures expressed unease at the relocation of the new company’s headquarters to Canada, citing concerns over London’s role as a global mining hub and the potential for job losses. A senior Conservative MP said the deal risked “hollowing out” Britain’s presence in the sector.

The transaction still requires regulatory approval in several jurisdictions, including Canada and South Africa. The companies anticipate the process will take 12 to 18 months to complete. If successful, Anglo Teck will invest CAD 4.5 billion in Canada over the next five years, part of a broader strategy to anchor its global operations.

While the Anglo-Teck deal dominated headlines, smaller M&A activity also underscored ongoing cross-border momentum. Turkish fintech Moka United confirmed the acquisition of Affiniture Cards, bolstering the UK footprint of its digital banking brand RUUT. The deal highlights continued appetite among international challengers to expand into Britain’s financial services sector.

Both transactions show the UK’s pivotal role in global deal-making — whether as a market for capital-intensive mining giants or as a launchpad for new entrants in financial technology.