London-listed Anglo American (LSE: AAL) surged more than 7% in early Tuesday trade, making it the FTSE 100’s top riser. The move came after the miner agreed to a $53bn merger with Canadian rival Teck Resources, creating one of the world’s largest copper producers. Shares are now trading near 2,511p, their highest level in months, and extending year-to-date gains after a volatile stretch for miners.
The merger will form “Anglo Teck,” a copper-focused powerhouse headquartered in Vancouver but maintaining a primary listing in London. The deal offers:
The move also represents a turnaround story: just last year Anglo was fending off bids from BHP and undergoing radical restructuring. Now, it has positioned itself as a predator rather than prey.
The Anglo–Teck merger is more than a balance-sheet story. It shows how copper has become the metal everyone wants a bigger stake in. From the wiring of electric vehicles to the backbone of renewable grids, copper is the quiet winner of the energy transition, and miners are scrambling to lock in supply before the cycle tightens further.
Anglo’s decision to shift its headquarters to Vancouver underlines how strategic Canada has become in this race. The country not only offers proximity to major copper projects but also carries strong political weight, with Ottawa demanding firm commitments on jobs and investment. London keeps the primary listing, but the question of whether the UK can remain the natural home for the world’s biggest miners is becoming harder to ignore.
For the wider sector, this deal sets a marker. BHP, Rio Tinto, and Glencore have all circled rivals in recent years without landing a prize of this scale. The pressure is now back on them to respond, either through fresh bids or partnerships. Consolidation in copper is clearly accelerating, and Anglo has just moved itself from the hunted to the hunter.
Yes, Anglo has promised the $4.5bn one-off payment to sweeten the deal, but it hasn’t scrapped its ordinary dividend policy. The payout ratio could be reviewed once the merger is complete, but long-term investors should still expect regular distributions tied to earnings. The caveat is copper price swings, if the metal dips, dividends could be leaner.
De Beers has been a headache for Anglo for years, and the merger doesn’t change that. Management has already signaled it’s exploring “strategic options,” which is polite code for a sale or spin-off. If copper is the new crown jewel, diamonds look increasingly non-core.
It’s possible, but unlikely. Canada will want guarantees on jobs and investment, which Anglo has already offered. The bigger risk is in the fine print: overlapping copper assets in South America could draw scrutiny from competition authorities. Approval is expected within 12–18 months, but investors should be prepared for political noise along the way.
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This post was last modified on Sep 09, 2025, 12:00 BST 12:00