Anglo American and Canada's Teck Resources on Tuesday said they had agreed a merger "of equals" to form the Anglo Teck group headquartered in Canada and expected to offer investors more than 70% exposure to copper.
In a joint statement, the two miners said the deal was expected to produce annual synergy savings of $800m at the end of the fourth year after completion.
London-listed Anglo will own about 62.4% of the new entity and Teck 37.6%, they added. Anglo's chief executive, Duncan Wanblad, will remain CEO, while Teck's Jonathan Price will serve as his deputy.
The two companies operate adjacent copper mines in Chile - Quebrada Blanca and Collahuasi - which are expected to deliver a $1.4bn boost in annual average underlying core earnings from synergies between 2030-20493, which is expected to result in an increase of 175,000 tonnes of potential additional annual copper production
Reporting by Frank Prenesti for Sharecast.com