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MINING M&A: HOW RIVALS COULD RESPOND TO ANGLO-TECK DEAL

The merger between Anglo AAL.L and Teck TECKb.TO could be the spark of mining M&A, says Jefferies, which outlines how rivals might respond — either by making their own bids, teaming up, or rushing to secure copper assets before the window closes.

Analyst Christopher LaFemina says the deal might go through smoothly, but there's a chance other companies could step in and try to buy one of the two — both have been takeover targets before, and consolidation in mining "tends to happen in waves".

BHP BHP.AX is facing falling copper output and has expensive projects with low returns. It tried to buy Anglo last year and LaFemina warns that if it wants top-tier copper assets, it has to move fast: "Act now, or forever hold your peace."

Rio Tinto RIO.L has shifted to lithium but still wants more copper. Glencore GLEN.L, which tried to buy Teck in 2023, is known for dealmaking but may lack financial strength for a big move alone. Freeport FRI.V has a strong balance sheet and trades at a premium, but is unlikely to enter a bidding war.

Vale VALE3.SA, Southern Copper SCCO.N and Agnico Eagle AEM.TO are also mentioned as possible players, though each has its own limits. Some may prefer smaller deals or organic growth.

Bottom line: if the Anglo-Teck deal goes ahead, it could reshape the copper landscape.

More reading here: Anglo-Teck proposed merger could break mining consolidation deadlock

(Danilo Masoni)

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