Latham & Watkins and Wachtell Lipton Rosen & Katz have scored lead roles on the $53bn merger of London-listed Anglo American with its Canadian rival Teck Resources, the largest mining sector M&A deal in more than a decade.
A Latham team led by New York/Orange County corporate partner Charles Ruck and London corporate partners Sam Newhouse and Ed Barnett is guiding Anglo, which also called in Canadian law firm Torys and Linklaters’ South African alliance firm Webber Wentzel for advice on the deal.
Meanwhile, Teck is being guided by Wachtell, with the team led by corporate partners Daniel Neff and Mark Gordon. Canadian firm Stikeman Elliott is also counselling Teck alongside Freshfields and Canadian tax law boutique Felesky Flynn.
The deal will form a top five global copper producer, the companies said on Monday, with demand for the metal set to increase sharply, fuelled by the boom in electric vehicles as well as in renewable energy infrastructure and data centres.
It follows Anglo fending off a series of takeover attempts by larger rival BHP last year, pushing it to radically reshape its business to focus on copper and improve its financial performance. Latham has been supporting the miner in its efforts, with a team led by Newhouse, Barnett and corporate partner Emily Cridland guiding the $3.8bn sale of its remaining coal operations in Australia to Peabody Energy and the sale of its minority stake in Australian coal joint venture Jellinbah Group to Zashvin for $1.1bn last year.
In May, the miner also spun out its $11bn platinum mining business, repped by Linklaters, and confirmed earlier this month it had sold its remaining stake.
Anglo chief executive Duncan Wanblad said the Teck merger formed “a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long”.
“Having made such significant progress with Anglo American’s portfolio transformation… now is the optimal time to take this next strategic step to accelerate our growth,” he added.
Following the merger, Anglo shareholders will own 62.4% of the combined company and Teck shareholders will own 37.6%. Anglo’s shareholders will receive a special dividend of $4.5bn ahead of the deal’s completion.
Teck fended off its own $22.5bn takeover bid in 2023 from Glencore but later sold its steelmaking coal business to a consortium led by Glencore for $9bn, calling in Paul Weiss, Stikeman Elliott and Felesky Flynn for advice.
GLP understands the Freshfields team advising Teck on the Anglo merger is led by global energy and real assets co-head Jessamy Gallagher in London, alongside M&A partner Stephen Hewes.
Wanblad will remain CEO of the new company, to be known as Anglo Teck, with Teck’s leader, Jonathan Price, to become its deputy chief executive. Both bosses and other senior executives will be based in Canada following the deal’s completion, with the company to have its global headquarters in Vancouver but retain its primary listing on the London Stock Exchange.
The merger is expected to complete within 12 to 18 months, subject to regulatory approval, and generate $800m of annual cost savings by the end of the fourth year following completion.
The Torys team advising Anglo includes partners Mike Amm (M&A), Omar Wakil (competition), David Forrester (M&A), Josh Lavine (corporate and securities), Braden Jebson (corporate and securities) and Carly Klinkhoff (M&A).
The Webber Wentzel team advising Anglo includes partners Christo Els (M&A), Daryl Dingley (competition), Jonathan Veeran (regulatory), Mncedisi Mpungose (M&A) and Shirleen Ritchie (tax).
Centerview Partners, Morgan Stanley, Goldman Sachs and RBC Capital Markets are acting as financial advisers to Anglo American. Ardea Partners and BMO Capital Markets are serving as financial advisors to Teck.
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