China Vets Anglo-Teck Deal Over Copper Supply Pledges

China's antitrust regulator has asked Anglo American to commit to steady copper concentrate flows as a condition for clearing its $54 billion takeover of Teck Resources Ltd.

The deal, which combines two major copper producers, would control about 5% of global copper supply. However, China holds an effective veto and has used its antitrust reviews to extract strict 'behavioral remedies' that protect its domestic industrial supply chain.

Anglo American has made good progress toward completion and is working constructively with the Chinese regulator, SAMR, through its structured review process.

The combined Anglo Teck would control about 5% of global copper supply, below competition thresholds of 10% to 15%. Yet as the largest buyer of both companies' metal, China holds an effective veto and has a track record of using its antitrust reviews of megadeals to extract strict 'behavioral remedies' that protect its domestic industrial supply chain.

The regulator has sought assurances covering volumes sold directly and through traders, and is now negotiating remedies based on feedback gathered from Chinese smelters. Asset sales are not currently part of the package.