Anglo American (AAL) M&A Announcement summary

Deal rationale and strategic fit

• Merger creates a world-leading critical minerals producer with over 70% copper exposure, ranking among the top five global copper producers and leveraging complementary portfolios, technical expertise, and operational strengths.

• The combined entity will have a diversified asset base, including world-class copper, premium iron ore, and zinc operations, with significant growth optionality in brownfield and greenfield projects.

• Headquarters will be in Vancouver/Canada, with significant representation and commitments in Canada, South Africa, and the UK, reflecting both companies' heritages.

• The merger supports national priorities in Canada and South Africa, including investment, employment, Indigenous and community relations.

Financial terms and conditions

• Anglo American will issue 1.3301 new shares for each Teck Resources share; Anglo shareholders receive a $4.5 billion special dividend ($4.19 per share) before closing.

• Post-transaction, Anglo American and Teck shareholders will own approximately 62.4% and 37.6% of the combined entity, respectively.

• The merger will be implemented via a plan of arrangement under Canadian law, with an exchangeable share structure for eligible Canadian shareholders.

Synergies and expected cost savings

• $800 million in pre-tax recurring annual synergies expected, mainly from procurement, overheads, marketing, and shared infrastructure, with 80% realized by year two and full realization by year four post-completion.

• Industrial synergies from integrating Collahuasi and Quebrada Blanca assets are expected to deliver an incremental $1.4 billion in annual average underlying EBITDA and 175,000 tonnes of additional copper production.

• One-off cash synergy of at least $200 million from working capital improvements expected within three years.

• Realization of synergies will require $700 million in one-off costs for recurring synergies and $1.9 billion for long-term operational synergies.