Anglo American plc and Turk Resources agree to merge

Anglo American plc and Canadian Teck Resources announced on the 9th that it will merge. If approved by regulators, this will become the largest mining merger in the world in more than a decade.

According to reports, according to the merger agreement, the merged company is intended to be named Angrotek, headquartered in Canada and its main listing location is London. The combined market capitalization of the two companies exceeds US$53 billion. 62.4% of the new company's shares will be held by the original shareholders of Anglo American Resources Group, and the remaining 37.6% will be held by the original shareholders of Teke Resources. Duncan Vinbrad, the current CEO of Anglo-American Resources, will serve as the head of the new company.

This merger means that Anglo-American Group has made a "big bet" in the copper mine field. Driven by the global electric vehicle industry development and the demand for construction of data centers, the industry expects the demand for copper to grow rapidly.

Anglo-American and Turkish Resources operated in Chile are close to each other. In recent years, news has been heard that big buyers have "littled" these two mining companies from time to time. BHP Billiton Australia has made acquisition offers for Anglo-American Resources and Garlencore Switzerland for Turkish Resources. Turk Resources CEO Jonathan Price said the regulatory approval process usually takes 12 to 18 months. Some financial analysts believe that other competitive buyers may appear during this period.

Wenbrad told media reporters in Vancouver on the 9th that through the merger, "we will have a stronger and more resilient financial platform with scale advantages" and have more "flexibility" in capital allocation to obtain the maximum rate of return. According to the expected goals, annual cost savings of US$800 million can be achieved in the fourth year of the merger.