Teck Surges as Key Proxy Firms Endorse Anglo American Merger
Influential advisors ISS and Glass Lewis recommend shareholders approve the deal, citing significant value creation and strategic benefits.
Shares of Teck Resources (NYSE: TECK) climbed in Tuesday trading after two of the world's most influential proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, recommended that shareholders vote in favor of the company's proposed merger with Anglo American. The endorsements represent a major milestone for the deal, significantly boosting the likelihood of creating a global mining powerhouse focused on copper and other critical minerals.
Teck's stock rose 1.7% to $42.96 following the news, reflecting investor optimism that the path is now clear for the creation of a combined entity. In a press release issued Tuesday, both advisory firms highlighted the compelling strategic and financial logic of the merger. They pointed to the substantial value creation potential for Teck shareholders, including an estimated $800 million in annual pre-tax synergies and a potential $1.4 billion average annual EBITDA uplift.
The proposed "merger of equals," announced in September 2025, aims to create a dominant player in the critical minerals space, with a particular emphasis on copper, a key component in the global transition to a lower-carbon economy. The combined entity, to be named Anglo Teck, would be one of the top five global copper producers. Under the terms of the agreement, Anglo American shareholders would own approximately 62.4% of the new company, with Teck shareholders holding the remaining 37.6%.
This strategic combination comes after a period of intense consolidation pressure in the mining sector. Both Teck and Anglo American had previously been the targets of unsolicited takeover bids from rivals. In 2023, Teck successfully rebuffed a $22.5 billion offer from Glencore, arguing that the bid undervalued its growing copper business. Similarly, Anglo American fend off three separate approaches from BHP in 2024 and a final attempt in November 2025, with the last bid valued at nearly $49 billion.
The separate paths of the two companies, both of which defended their independence, have now converged in a deal they argue will deliver superior long-term value. The backing from ISS and Glass Lewis is critical, as large institutional investors, who make up over 76% of Teck's ownership, often follow their voting recommendations. The advisory firms' analysis validates the board's assertion that the merger provides a more certain and strategically sound path forward than remaining a standalone entity or succumbing to a hostile takeover.
Based in Vancouver, Teck Resources has been repositioning itself to focus on future-facing commodities. The company has been divesting its coal assets to sharpen its focus on its high-quality copper and zinc operations. According to company filings, the merger would create a portfolio with over 70% exposure to copper, alongside premium iron ore and zinc assets. This aligns with a market where demand for copper is expected to surge due to its use in electric vehicles, renewable energy infrastructure, and grid modernization.
Analysts have a consensus target price of $39.65 on Teck's stock, with ratings currently mixed between buy and hold recommendations. The successful execution of the merger could lead to a re-rating as the market digests the scale and enhanced commodity profile of the new Anglo Teck.
The final decision now rests with shareholders, who are scheduled to vote on the transaction in December. The deal requires approval from at least two-thirds of Teck's shareholders. With the influential proxy advisors now formally on board, management's hand has been significantly strengthened as they seek to secure the necessary votes to finalize one of the mining industry's most transformative deals in years.