According to sources familiar with the matter, Anglo American is approaching a deal to acquire Canadian mining company Teck Resources Ltd (TECK.US). The sources indicate that Anglo American is engaged in intensive negotiations for the potential acquisition of Teck Resources Ltd, with an announcement potentially coming as early as this week. Some sources suggest that Anglo American is considering primarily a stock-based payment structure. The timing and structure of the deal may still change, and negotiations could ultimately fail to reach an agreement.

A merger between the two companies would rank among the largest deals in mining history. Teck Resources Ltd's Canadian-listed shares have declined approximately 20% over the past 12 months, with a current market capitalization of about CAD 23.7 billion (approximately USD 17.1 billion). During the same period, Anglo American's London-listed shares have risen 15%, reaching a market value of GBP 26.9 billion (approximately USD 36.4 billion).

In recent years, both companies have been acquisition targets for larger mining firms. Last year, Anglo American successfully fended off a USD 49 billion takeover bid from BHP (BHP.US), while Glencore's attempt to acquire Teck Resources Ltd in 2023 was unsuccessful. This move to acquire Teck Resources Ltd could help Anglo American expand its scale, thereby reducing the risk of becoming an acquisition target itself.

Both companies have recently been seeking to streamline their business structures. Teck Resources Ltd has sold the majority of its coal business stakes to Glencore. Meanwhile, Anglo American has exited platinum mining and is attempting to divest its coal mining operations as well as spin off its De Beers diamond division.

The combination of the two companies could generate synergies. Teck Resources Ltd's flagship operation is the Quebrada Blanca 2 copper project in Chile, while Anglo American holds stakes in the adjacent Collahuasi copper mine. The integration of these operations could enhance production and profits through joint operations.