Anglo American Corporation head office, Johannesburg, South Africa
By Tinswalo Baloyi
JOHANNESBURG, (CAJ News) – A WAVE of alarm is rippling through South Africa’s mining and investment community as Anglo American moves ahead with a proposed US$60 billion merger with Canada’s Teck Resources — a deal critics say will accelerate Anglo’s withdrawal from South Africa and hand disproportionate benefits to Canada.
Announced on 9 September, the planned all-share, nil-premium transaction would create a new entity, Anglo Teck, with its global headquarters in Vancouver.
While the companies publicly describe it as a “merger of equals,” analysts and former executives argue it is anything but.
Anglo American’s market capitalisation stands at roughly US$42 billion — more than double Teck’s US$20 billion — and Anglo generates more than three times Teck’s annual revenue.
Yet under the agreement, Teck’s influence would dramatically outweigh its economic contribution. Anglo Teck’s board will be chaired by Teck’s Sheila Murray, a large portion of senior executives will be based in Canada, and the group has committed to invest C$4.5 billion (R55 billion) into Canada over five years. By contrast, Teck’s Canadian operations accounted for only 3.4% of the combined entity’s 2024 revenue.
The merger comes at the end of a long period of disposals by Anglo CEO Duncan Wanblad, who has shed major South African assets including its stake in Valterra Platinum earlier this year.
After the Teck deal, Anglo Teck’s only remaining local asset would be Kumba Iron Ore, raising widespread expectations that Kumba will be sold or demerged — a move analyst at JP Morgan say is likely as the combined entity pivots to a copper-pure-play strategy.
In just a decade, Anglo’s presence in South Africa has fallen from 88,661 employees to the brink of a complete exit.
Founded in 1917, the group once dominated the South African economy, controlling companies worth 43% of the JSE’s market capitalisation in 1994.
The proposed merger, commentators warn, represents the final dismantling of what was once the country’s most influential corporate empire.
The deal is facing tough scrutiny in Canada, where Prime Minister Mark Carney and Industry Minister Mélanie Joly have pushed for commitments that would expand the country’s influence over the new company.
Canada has insisted that the combined group move its headquarters to Vancouver, increase local employment guarantees, and align with its critical minerals’ strategy.
Business analysts say these concessions give Canada disproportionate leverage considering that over 90% of Anglo Teck’s future revenue will come from developing countries — including South Africa, Chile, Peru, and Brazil.
Meanwhile, commitments to South Africa are markedly modest. Anglo has reiterated its plan to invest R11.2 billion in new processing technology at the Sishen mine and R600 million into a junior exploration fund with the IDC — investments first announced years ago and not contingent on the Teck deal.
The Canadian investment pledge, by contrast, is seven times larger.
Industry experts and civil-society organisations are now urging the South African government to oppose the merger and take steps to reclaim strategic mineral assets before they are fully lost to foreign control.
Anglo’s remaining South African assets — Kumba, Samancor and De Beers Consolidated Mines — generated US$1.6 billion in 2024 EBITDA, accounting for more than 22% of Anglo’s total (excluding Valterra).
A growing policy proposal suggests demerging these assets into a state-led, publicly listed mining company, with the Public Investment Corporation (PIC), Industrial Development Corporation (IDC), community trusts, and workers holding a combined 50% stake.
Based on current market valuations, Anglo’s South African portfolio is estimated at R150 billion, giving the PIC alone a potential 34.5% stake in a new national mining champion.
As Canada tightens its grip on the future of Anglo Teck, pressure is mounting on Pretoria to intervene before Kumba and South Africa’s remaining strategic assets are cast adrift.
Without decisive action, critics warn, the country risks losing control of a century-old mining legacy — and the jobs, revenues and sovereignty tied to it.
– CAJ News
