0107 GMT - Regulatory scrutiny under Canada's Investment Canada Act is the most material risk to a merger of Anglo American and Teck Resources, says Wood Mackenzie research director James Whiteside. The country's industry minister is "required to confirm alignment with national economic and security interests," he says. Although the companies have identified potential cost savings, Whiteside reckons the real upside could come from a higher valuation multiple if Anglo Teck can position itself as a pure-play copper growth story. For Anglo, the deal accelerates its strategy to prioritize scale and high-margin commodities. It offers Anglo "a geographically diversified pipeline of copper growth projects with strong returns." For Teck, the deal offers the highest copper exposure and least dilution among potential suitors, while keeping strategic influence through board representation, he adds. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

September 09, 2025 21:07 ET (01:07 GMT)

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