Mining giants Teck Resources and Anglo American to merge

Canadian mining company Teck Resources and British competitor Anglo American have agreed to merge as equals to form Anglo Teck.

Under the plan of arrangement, Anglo American will issue 1.3301 ordinary shares for each Teck Class A and Class B share.

Anglo Teck will be listed on stock exchanges in London, New York, Johannesburg and Toronto.

The global headquarters are due to be in Vancouver with corporate offices in London and Johannesburg.

Anglo American will pay a special dividend of $4.5 billion ahead of the merger's completion.

Post-merger, Anglo American and Teck shareholders will own approximately 62.4% and 37.6% of Anglo Teck, respectively.

The executive team, led by chief executive Duncan Wanblad, deputy chief executive Jonathan Price, and chief financial officer John Heasley, will be based in Canada, with representation from South Africa and the United Kingdom.

Anglo Teck expects to generate $800 million in annual pre-tax synergies within four years and plans to invest C$4.5 billion ($3.3 billion) in Canada over five years to support copper mining, mineral processing, innovation, and job growth.

Prior to completion, Anglo American will seek shareholder approval to change its legal name to "Anglo Teck" from completion of the merger.