By Divya Rajagopal TORONTO, Dec 9 (Reuters) - Shareholders of Canadian miner Teck Resources on Tuesday voted in favor of the merger with Anglo American, paving the way for both companies to move to
Teck Resources Shareholders Approve Anglo American Merger
By Divya Rajagopal
TORONTO, Dec 9 (Reuters) - Shareholders of Canadian miner Teck Resources on Tuesday voted in favor of the merger with Anglo American, paving the way for both companies to move to the next step of seeking approvals from regulators across the world, including Canada.
Teck and Anglo American announced in September that they were merging in an all-stock $53 billion deal to create the fifth-largest copper miner in the world.
The combined entity, to be known as Anglo-Teck, would be headquartered in Vancouver, Canada, with a listing on the London Stock Exchange.
The Anglo-Teck portfolio will produce more than 1.2 million tonnes of copper annually, the companies had said.
Demand for copper has surged as major AI players look for steady sources of electricity to power a data center boom, putting global miners in the spotlight and spurring consolidation in the industry.
The two companies operate adjacent copper mines in Chile — Quebrada Blanca and Collahuasi — which are expected to deliver further operational benefits.
Quebrada Blanca is Teck's flagship mine, but a tailings issue related to the disposal of mine waste has caused it to miss production forecast, dragging down the company's shares.
For both Teck and Anglo, the merger is a defense against hostile acquisition offers from other mining giants such as BHP and Glencore.
Analysts say the deal has, for now, put on hold any possibility of interlopers who could break the deal. However, the merger also opens the door for other miners to set out on mega acquisitions in the sector.
(Reporting by Divya Rajagopal in Toronto and Tanay Dhumal in Bengaluru; Editing by Anil D'Silva and Maju Samuel)
