With mining major Glencore having confirmed it is in talks with fellow major miner Rio Tinto to effect a merger that could create the world’s largest mining company at a combined market value of $207-billion, market research firm CreditSights maintains its “outperform” rating for Glencore. In turn, the firm maintains its “market perform” expectation for Rio Tinto, meaning their bonds or credit will deliver excess returns roughly in line with their sector or peer group.
Copper-focused Teck Resources has filed its meeting materials ahead of a special shareholder meeting on December 9 to approve a merger with Anglo American, creating a new global mining leader headquartered in Canada. “This merger presents a unique opportunity to create a global mining powerhouse headquartered in Canada, offering our shareholders the chance to participate in a larger company with greater resilience, growth potential and strategic flexibility for the long-term,” said chairperson Sheila Murray.
South Africa-headquartered Gold Fields has cleared the last major conditions in its A$3.3-billion takeover of Australia's Gold Road Resources, after shareholders voted in favour of the deal and the Supreme Court of Western Australia approved the scheme of arrangement. The transaction, which makes Gruyere Holdings – a wholly owned subsidiary of Gold Fields – the 100% owner of Gold Road, became legally effective on Friday following the court orders being lodged with the Australian Securities and Investments Commission. Gold Road shares will be suspended from trading at the close of Friday's session.
The proposed merger of Teck Resources and Anglo American is drawing opposition from Indigenous leaders in British Columbia, who warn the deal cannot go ahead without consultation. The Osoyoos Indian Band said Thursday that the mega transaction risked repeating a long history of governments and companies overlooking Indigenous rights and title
Canadian Prime Minister Mark Carney told Anglo American to move its headquarters to Canada or its proposed acquisition of Teck Resources would not be allowed to proceed, the Globe and Mail reported on Monday, citing two sources familiar with the matter. London-based Anglo American and Canada's Teck last week announced a $53-billion planned merger, the sector's second-biggest M&A deal ever, and said the merged entity, Anglo Teck, would be headquartered in Canada and have a primary stock listing in London.
Top global miner BHP's focus on expanding its own copper assets while it undergoes leadership change means it is unlikely to gatecrash the planned $53-billion tie-up of Anglo American and Teck Resources, investors and bankers said on Wednesday. London-listed Anglo American and Canada's Teck Resources announced a merger on Tuesday, marking the sector's second-biggest tie-up ever, to forge a new global copper-focused heavyweight.