"Merger of Equals" puts Anglo in charge with 62% of the new company, after the Keevils won enough concessions to sell the transaction at home…
Anglo-Teck merger creates a 1.2MM Tons Copper producer, combining Collahuasi and Quebrada Blanca 2 mines in Chile for significant cost savings. However, other companies like Glencore, BHP, or Rio might make a better offer for either Anglo or Teck before the deal closes.
The new 1.2MM Tons Copper producer's main benefit is putting together its two huge mines in Chile: Collahuasi & Quebrada Blanca 2 (QB2). These are effectively one as they dig the very same copper ore body from different angles. The synergies from combining these operations alone, is expected to be hundreds of millions of dollars of savings per year.
The big question now is, will some other company step in with a better offer—for Teck or Anglo?
History says we haven't seen how this story ends, say Javier Blas: It's not difficult to imagine an interloper offering more money for $TECK, forcing Anglo to offer a premium. Glencore, BHP or Rio could also go after $AAL.L before the deal closes. $330MM is the break-up fee…
See the whole article on Bloomberg here:
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