Canadian mining group Teck Resources said it had held discussions with another potential merger partner before agreeing to its planned all-share merger of equals with Anglo American, documents sent to shareholders ahead of a December vote show.
The miner disclosed that talks with an unnamed “Party X” took place intermittently between 2023 and early 2025, exploring a no-premium, all-share transaction. The discussions were ultimately abandoned in May this year, owing to “valuation and governance considerations”, according to the filing.
The revelation provides new insight into how the Anglo deal, announced in September, came together after years of strategic deliberation and shifting corporate focus at Teck.
Teck said it had been reviewing options to maximise shareholder value since 2021, including mergers, acquisitions and divestments. This led to the sale of its oil sands stake and the divestiture of its steelmaking coal business, Elk Valley Resources, in 2024 – moves designed to transform Teck into a copper-focused company aligned with the global energy transition.
Talks between Teck and Anglo date back several years and included consideration of various deal structures, including a merger of equals and joint ventures centred on potential synergies between Teck’s Quebrada Blanca operations in Chile and Anglo’s nearby Collahuasi mine.
After Anglo walked away from discussions in mid-2023 over a “lack of alignment on transaction parameters”, contact between the two companies resumed in early 2024. At some point during the year, Teck floated the idea of acquiring Anglo American’s interests in certain Chilean and Peruvian assets.
By mid-2025, the companies had revived merger talks in earnest, holding several rounds of in-person negotiations between July and September.
Teck’s board approved the merger on September 8, 2025, concluding it represented “the best interests of Teck and its shareholders”.
Under the terms of the deal, the combined company will be headquartered in Canada with a UK-incorporated parent, and Anglo shareholders will receive a special pre-closing dividend to balance ownership.
Anglo Teck will be a top-five global copper producer with a premier portfolio of copper, zinc and iron-ore assets. Teck shareholders will own about 37.6% of the combined company, retaining exposure to future value creation from operational synergies and strategic initiatives across Anglo American’s global assets.
Jonathan Price, Teck president and CEO, said the deal was expected to deliver “tremendous value for Teck shareholders” and support Canada’s economic opportunity in critical minerals, while creating a company with scale, resilience and enhanced capital markets profile.
Teck shareholders are set to vote on the merger on December 9. The deal is expected to close within 12 to 18 months, subject to regulatory and shareholder approvals.
“This merger presents a unique opportunity to create a global mining powerhouse headquartered in Canada, offering our shareholders the chance to participate in a larger company with greater resilience, growth potential and strategic flexibility for the long-term,” said chairperson Sheila Murray.
“Your board unanimously recommends this merger, as we firmly believe it is the absolute best path forward to realise the full potential of our strategy and our portfolio.”