Anglo American says Teck review leaves merger value, synergies unchanged
Anglo American said on Wednesday that an operational review by its merger partner Teck Resources does not alter the strategic or financial terms of their planned combination.
The mining company stated that the outcome of Teck's review was broadly consistent with its own due diligence performed before the merger of equals was announced in September.
As a result, the overall strategic rationale for the merger and all synergy values and their timing remain unchanged, according to the company.
The deal is still expected to generate $800 million in pre-tax recurring annual synergies and a projected $1.4 billion average annual uplift in earnings by combining the adjacent Collahuasi and Quebrada Blanca copper operations in Chile.
Anglo American added that it supports Teck's more measured approach to ramping up the Quebrada Blanca project, noting its own teams had resolved similar issues at their Quellaveco mine.
The merger aims to create a new Canadian-headquartered company called Anglo Teck, which will be one of the world's largest copper producers.
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