Anglo-Teck merger, nickel sale are test cases for navigating geopolitical complexities, CEO says

Anglo-Teck Merger and Nickel Sale Face Geopolitical and Antitrust Hurdles

Overview of Anglo American's Strategic Moves and Regulatory Challenges

By Olivia Kumwenda-Mtambo and Nelson Banya

JOHANNESBURG, Oct 7 (Reuters) - Anglo American's proposed $54 billion merger with Canada's Teck Resources and the sale of its Brazilian nickel business have become test cases for navigating geopolitical complexities as they await antitrust approval, CEO Duncan Wanblad said on Wednesday.

Progress and Pending Approvals

The Anglo-Teck merger, announced in 2025, has received approval from all countries where the companies operate except China. Both expect the deal to close by March 2027.

Critical Minerals and Global Competition

Critical minerals have become a flashpoint in global competition, with major economies seeking to secure supply chains for electric vehicles, renewable energy and defence.

China's Conditions and Antitrust Concerns

China's antitrust regulator has asked Anglo American to commit to supplying the country with a steady flow of copper concentrate as a condition for approving the merger, three people aware of the development said.

Geopolitical and Supply Chain Complexities

Geopolitical shifts, supply chain disruptions and critical mineral nationalism have created a complex environment for such deals, Wanblad told a mining conference in Johannesburg via video link.

'IN NEW WATERS'

"We are in new waters. We are pioneering in a way. I genuinely don't think from an antitrust perspective there should be any issues with any of these deals," Wanblad said.

Brazilian Nickel Sale and EU Scrutiny

He cited Anglo's proposed sale of its Brazilian nickel business to MMG, which drew a warning from the European Union over concerns the ‌Hong Kong-listed miner could divert supply away from Europe, hurting stainless steel producers there. The sale is awaiting EU approval.

Other Asset Sales

Anglo American also agreed to sell its steelmaking coal mines in Australia to UK-based miner Dhilmar for up to $3.88 billion.

"We are kind of the guinea pigs for the market in terms of working this out," Wanblad said.

Future Outlook and Strategic Focus

De Beers Sale and Restructuring

Wanblad also said he was hopeful the sale of diamond company De Beers would be completed by the end of this year.

The sale of the assets is part of Anglo's restructuring aimed at focusing on copper and iron ore.

Impact of Teck Merger

The Teck merger would expand Anglo's copper portfolio, positioning it as the fifth-largest producer of the metal critical to the energy transition.   

(Reporting by Nelson Banya and Olivia Kumwenda-Mtambo, editing by Rod Nickel)