China Holds Key to Anglo-Teck Merger as Copper Concentrate Supply Demanded

The proposed merger of Anglo American and Teck Resources hangs in the balance as China's antitrust regulator, SAMR, reviews the deal. The regulator has requested a supply of copper concentrate from the merged company as a condition for approval. Anglo and Teck own or participate in consortia for several key copper assets in Chile and Peru, including Los Bronces, Collahuasi, Quellaveco, Quebrada Blanca, Carmen de Andacollo, and Antamina.

The companies project that the merger will create one of the giants of global mining, with a portfolio consisting of more than 70% copper. However, China's demand for copper concentrate has sparked concerns about the potential impact on Western smelters. Analysts warn that allocating Anglo-Teck's volumes to the Chinese market could favor a shift from annual benchmark prices toward indexed spot prices.

The review process is ongoing, with March 2027 remaining as the closing deadline for the merger transaction. Teams from Anglo and Teck are collaborating in the review process, and both companies have already obtained regulatory approvals from several jurisdictions, including Canada, Chile, and South Korea.