Anglo American, Teck Resources Close to Strike the Biggest Mining Deal in Over a Decade

It must be noted that both these companies were pursued by bigger players in the industry.

SEATTLE (Scrap Monster): Anglo American Plc is nearing a deal to acquire Canada’s Teck Resources Ltd. The transaction is anticipated to turn out as the biggest mining deal in more than a decade.

Unnamed sources claim that Anglo American is in advanced negotiations to acquire Teck Resources, and that the agreement may be made public as soon as this week. It is anticipated that the London-listed miner will mostly pay in stock. However, sources warned that negotiations might still terminate without an agreement and that the timing and terms of the possible pact could alter.

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It should be mentioned that larger industry players pursued both of these businesses. Last year, BHP made an offer to buy Anglo American, and in 2023, Glencore plc made an effort to buy Teck Resources.

Additionally, both businesses have recently undergone restructuring. Tech has sold Glencore the majority of its coal business. In contrast, Anglo American has stopped mining platinum. It is also currently attempting to sell its De Beers diamond division and sell its own coal mines.

It is expected that the deal will result in increased efficiency. The Collahuasi mine in Chile, which is close to Teck's flagship Quebrada Blanca 2 copper project, is owned by Anglo American.