Teck Resources offers compelling exposure to copper, the metal most critical to the global energy transition, through a portfolio of world-class assets positioned to benefit from structural demand growth over the coming decades.
A proposed merger with Anglo American could create one of the world’s top five copper producers, with more than 70% of the combined business centered on copper and pro forma production projected to reach 1.35 million tonnes by 2027.
Beyond the merger rationale, the company has a strong growth profile and will gain from the structural tailwinds supporting copper demand from electrification, renewable energy infrastructure, and data center expansion.
TECK RESOURCES LTD. (Toronto symbol TECK.B; www.teck.com) has undergone a significant recent transformation.
In 2024, Teck sold its remaining 77% stake in metallurgical coal business Elk Valley Resources (EVR) to Switzerland-based mining company Glencore plc (Over-the-counter Pink Sheets symbol GLCNF) for $7.3 billion U.S.
The remaining company now operates copper and zinc mines. Those include the second phase of Teck’s Quebrada Blanca copper mine in northern Chile (called QB2). The company holds a 60% stake in QB2.
Meanwhile, Australian mining company BHP Group Ltd. (New York symbol BHP) has now dropped its offer to merge with U.K.-based mining company Anglo American PLC (Over-the-counter symbol AAUKF). Note—BHP is a recommendation of Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks.
As a result, Anglo can now proceed with its plan to merge with Teck.
Investors will receive 1.3301 of an Anglo share for each Teck share they hold. Teck shareholders will own 37.6% of the combined company (called Anglo Teck), with Anglo investors holding the remaining 62.4%. The shares will trade on the London, Toronto and New York exchanges.
Copper will account for 72% of the new company’s production, followed by iron ore (22%) and zinc (6%).
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The merger will let the companies combine their major copper mines in Chile—Quebrada Blanca (60% owned by Teck) and Collahuasi (44% owned by Anglo). That will help the new firm cut $800 million U.S. from its annual costs.
Teck shareholders voted to approve the deal at a special meeting on December 9, 2025.
Anglo American shareholders also voted to approve the merger on the same day.
The Canadian government must also approve the deal, and the review process will likely take several months. If successful, the firms expect to complete the transaction by the end of 2026. Anglo will pay a termination fee of $330 million U.S. to Teck if it is unable to complete the merger.
Teck’s chance of a higher bid adds investor appeal
Teck’s revenue in the three months ended September 30, 2025, rose 18.4%, to $3.39 billion from $2.86 billion a year earlier. That also topped the consensus forecast of $3.02 billion.
Due to problems with the tailing pond at QB2, which stores liquid and solid waste from the mine, Teck’s copper output in the quarter fell 9.8%. However, copper prices rose by 5.7%.
Likewise, higher zine prices (up 3.2%) helped offset a 14.1% drop in zinc concentrate production due to lower grades from its Red Dog mine in Alaska.
The higher revenue also helped lift earnings in the quarter, before unusual items, by 26.7%, to $0.76 a share (or a total of $372 million) from $0.60 a share (or $314 million). That beat the consensus estimate of $0.49 a share.
If regulators approve, the companies will probably complete the merger in late 2026 or early 2027. It’s also possible that Teck could receive a higher takeover offer from another bidder.
Recommendation in The Successful Investor: Teck Resources Ltd. is a buy.
