We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Teck Resources Progresses With Anglo American Merger Deal
Read MoreHide Full Article
Key Takeaways
TECK won Supreme Court of British Columbia approval, moving its Anglo American merger closer to closing.
Anglo Teck aims to be a top-five copper producer, with 70% exposure to copper and six world-class assets.
TECK holders will own 37.6% of Anglo Teck, with each share exchanged for 1.3301 Anglo American shares.
Teck Resources Limited (TECK - Free Report) announced that the Supreme Court of British Columbia approved its previously announced merger agreement with Anglo American plc (NGLOY - Free Report) . This pushes the deal closer to completion with only satisfaction or waiver of customary closing conditions remaining, including regulatory approvals in various jurisdictions worldwide.
Teck Resources’ Merger With Anglo American
In September, Teck Resources entered the merger agreement with Anglo American to form the Anglo Teck group. This move is expected to create a leader in global critical minerals and be highly attractive to both Teck Resources and Anglo American shareholders.
Teck Resources’ shareholders voted to approve the merger in early December.
Based in Canada, Anglo Teck will have more than 70% exposure to copper and is set to be among the top five global copper producers. The new company will boast an industry-leading portfolio, consisting of six world-class copper assets, and premium iron ore and zinc operations.
The combined annual copper production of 1.2 million tons is projected to grow 10% to 1.35 million tons by 2027. Anglo Teck is also set to be a major producer of premium iron ore for cleaner steelmaking. The combined company will be one of the world's largest zinc producers, with operations like the Red Dog mine in Alaska and the Trail Operations in British Columbia.
The deal will provide a significant boost to Canada's economy by investing C$4.5 billion ($3.25 million) over five years. The Canadian investment includes extending the life of the Highland Valley Copper Mine and boosting critical minerals processing capacity at Trail. Anglo Teck will also move forward with potential major new copper mines in Northwestern British Columbia and invest in critical minerals exploration, innovation, skills training, research and job creation in Canada.
The combined company will also have a footprint in South Africa, where it will continue to invest further.
Within four years of completion, the deal is expected to yield $800 million in annual pre-tax synergies. Around 80% of this is expected to be achieved within two years through economies of scale and operational efficiencies. The merger is also expected to generate an additional $1.4 billion in EBITDA synergies from 2030 to 2049 by optimizing adjacent assets, Collahuasi and Quebrada Blanca, through operational integration.
After the closing of the deal, Teck Resources will hold 37.6% of Anglo Teck, while Anglo American will retain 62.4%. Each Teck Resources Class A and Class B share will be exchanged for 1.3301 Anglo American shares. The deal is subject to regulatory and court approvals. The boards of directors of both Anglo American and Teck Resources have given the go-ahead for the merger.
TECK’s Stock Price Performance
The company’s shares have gained 1.7% in the past year compared with the industry’s 31.9% growth.
Image Source: Zacks Investment Research
Teck Resources’ Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank of 3 (Hold).
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate indicates year-over-year growth of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.
The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Teck Resources Progresses With Anglo American Merger Deal
Key Takeaways
Teck Resources Limited (TECK - Free Report) announced that the Supreme Court of British Columbia approved its previously announced merger agreement with Anglo American plc (NGLOY - Free Report) . This pushes the deal closer to completion with only satisfaction or waiver of customary closing conditions remaining, including regulatory approvals in various jurisdictions worldwide.
Teck Resources’ Merger With Anglo American
In September, Teck Resources entered the merger agreement with Anglo American to form the Anglo Teck group. This move is expected to create a leader in global critical minerals and be highly attractive to both Teck Resources and Anglo American shareholders.
Teck Resources’ shareholders voted to approve the merger in early December.
Based in Canada, Anglo Teck will have more than 70% exposure to copper and is set to be among the top five global copper producers. The new company will boast an industry-leading portfolio, consisting of six world-class copper assets, and premium iron ore and zinc operations.
The combined annual copper production of 1.2 million tons is projected to grow 10% to 1.35 million tons by 2027. Anglo Teck is also set to be a major producer of premium iron ore for cleaner steelmaking. The combined company will be one of the world's largest zinc producers, with operations like the Red Dog mine in Alaska and the Trail Operations in British Columbia.
The deal will provide a significant boost to Canada's economy by investing C$4.5 billion ($3.25 million) over five years. The Canadian investment includes extending the life of the Highland Valley Copper Mine and boosting critical minerals processing capacity at Trail. Anglo Teck will also move forward with potential major new copper mines in Northwestern British Columbia and invest in critical minerals exploration, innovation, skills training, research and job creation in Canada.
The combined company will also have a footprint in South Africa, where it will continue to invest further.
Within four years of completion, the deal is expected to yield $800 million in annual pre-tax synergies. Around 80% of this is expected to be achieved within two years through economies of scale and operational efficiencies. The merger is also expected to generate an additional $1.4 billion in EBITDA synergies from 2030 to 2049 by optimizing adjacent assets, Collahuasi and Quebrada Blanca, through operational integration.
After the closing of the deal, Teck Resources will hold 37.6% of Anglo Teck, while Anglo American will retain 62.4%.
Each Teck Resources Class A and Class B share will be exchanged for 1.3301 Anglo American shares. The deal is subject to regulatory and court approvals. The boards of directors of both Anglo American and Teck Resources have given the go-ahead for the merger.
TECK’s Stock Price Performance
The company’s shares have gained 1.7% in the past year compared with the industry’s 31.9% growth.
Teck Resources’ Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank of 3 (Hold).
Some better-ranked stocks from the basic materials space are Agnico Eagle Mines (AEM - Free Report) and OR Royalties Inc. (OR - Free Report) . AEM sports a Zacks Rank #1 (Strong Buy) and OR has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate indicates year-over-year growth of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.
The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.