You shareholders of the Anglo-American and of Technical resources approved this Tuesday (9) a merger previously announced, the companies reported, paving the way for the creation of an industry heavyweight copper and leave regulatory approvals as the final hurdle.
More than 99.17% of the London-listed mining company’s shareholder votes were in favor, Anglo said in a statement. A simple majority was required for the motion to pass. Teck shareholders also passed the two-thirds approval threshold.
The new company, Anglo-Teck, will be based in Vancouver and its main listing will be in London.
Fifth world producer of copper
Teck and Anglo American first announced in September their proposed $53 billion, all-stock, no-bonus merger that would create the world’s fifth-largest copper producer. Both companies have undergone significant restructuring in recent years, partly as a result of previous acquisition attempts.
Copper, an essential metal for energy And constructionis poised to benefit from increased demand driven by electric vehicles And artificial intelligence.
A major obstacle to the deal was the decision of the world’s largest publicly traded mining company, BHPwhich made a final attempt to buy Anglo in November as activist investors put pressure on the group. Rio Tinto looking for Teck.
The combined entity is expected to produce more than 1.2 million tonnes of copper per year. The consolidation is also expected to generate $800 million in annual savings and efficiencies by the fourth year after completion, the companies said.
Teck shares fell 0.8% after the shareholder vote. Anglo shares closed 0.5% lower in London.
The next step for both companies is to obtain regulatory approvals node CanadaIn China and in other important jurisdictions. The review process should focus on competition and national interest considerations, particularly given the designation of copper as critical mineral.
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