Anglo American (LON: AAL) is acquiring Teck Resources (TSX: TECK.A TECK.B, NYSE: TECK), Canada’s largest diversified miner, in a $50-billion all-share deal that would create the world’s fifth-largest copper producer — if regulators in Canada, the United States and China sign off.
Anglo will exchange 1.3301 shares for each Teck share, a structure it called a “zero-premium” merger. The math tells a different story: the exchange ratio represents a 17% premium on Teck’s closing price Monday, though Anglo will offset it with a $4.5-billion special dividend to its investors, leaving the effective premium at just 1%.
If completed, Anglo shareholders will own 62.4% of the new company, to be named Anglo Teck, while Teck shareholders will hold 37.6%.
Anglo chief executive officer Duncan Wanblad will lead the combined miner, with Teck CEO Jonathan Price as deputy CEO. Wanblad said the merged…
