China Blocks Anglo American-Teck Merger Over Copper Concentrate Access

The proposed $54 billion merger between Anglo American and Teck Resources is facing scrutiny from China's State Administration for Market Regulation. The regulator has asked Anglo American to ensure stable copper concentrate supplies to China as a condition for approving the merger.

China's review of the merger centers on copper concentrate access, as the country tries to secure feedstock for its smelting sector. This request underscores Beijing's growing use of antitrust approvals to protect domestic supplies of critical minerals tied to industrial demand and the energy transition.

The Anglo American-Teck merger has already cleared all other regulators but faces potential Chinese smelter-driven remedies. The merged company would control about 5% of global copper supply, which is below the typical levels that trigger stronger competition concerns. However, China remains influential due to its significant customer base for both companies' copper.