Anglo American plc (LON:AAL) has noted the statement issued by Teck Resources Limited today relating to the completion of its comprehensive operational review and updated outlook.
Anglo American conducted significant due diligence on Teck ahead of the merger agreement announced on 9 September 2025, which included site visits and extensive engagement on technical, legal, financial and other matters. While the specific outcome of the operational review that Teck has announced today was not known at the time, the outcome presented by Teck is broadly consistent with Anglo American’s independent due diligence and analysis. On this basis, the overall strategic rationale for the merger and all synergy values and their timing, as outlined in the 9 September merger announcement, remain unchanged.
Anglo American is fully supportive of Teck’s more measured approach to the ramp up of Teck’s Quebrada Blanca (“QB”) operation over the next few years, with Anglo American’s technical and project delivery teams having successfully resolved similar issues at Quellaveco during its ramp-up phase. Teck’s revised approach is designed to establish a tailings facility for the long term, which is critical to realise the very significant inherent value of QB over its life of mine. Based on its integration discussions with Teck, Anglo American shares Teck’s view about the full potential of QB and believes Anglo Teck will have the opportunity to unlock material additional value with the Collahuasi adjacency.
The merger of Anglo American and Teck presents an outstanding value creation opportunity, including by unlocking the expected very material earnings and cost synergies previously set out – being US$1.4 billion in annual average EBITDA uplift through the combination of Collahuasi and QB and US$800 million in pre-tax recurring annual synergies – creating a stronger, more resilient company to deliver outstanding value for both sets of shareholders and other stakeholders.
