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😬 This $53bn mining deal is bad for UK business

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Idin Sabahipour & Laura White
September 17, 2025

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Anglo American’s $53 billion merger with Teck shows two big trends: companies are simplifying, and the UK is losing ground as a base for global business.

Anglo American is stripping back to focus on copper, but it’s also shifting its leadership to Canada.

For law firms, that means more work on restructurings and cross-border deals, but also a warning that fewer transactions may centre in the UK.

EDITOR’S RAMBLE 🗣

I was feeling like I had a productive week — I mean, I answered 3 whole emails.

But this article made me think again!

Melissa Story is a newly qualified solicitor at Foot Anstey who’s living like there are 48 hours in each day.

She somehow manages to juggle:

  • a legal career,

  • playing semi-pro cricket, and

  • commentating for the BBC.

While I’m spending my weekends recovering from folding some laundry, she’s batting for Gloucestershire on Saturday, calling the final of The Hundred on Sunday, and back in the office by Monday.

Shout out to Melissa, keep doing your thing — but I needed a nap just typing that.

– Idin

P.S. We’re still buying successful applications. You’ll get £10 for each one you share. If you’ve got some past cycles, it’s a quick way to earn some cash. Submit yours here.

😬 This $53 billion mining deal is bad for UK business

What’s going on here?

Anglo American, one of the UK’s biggest mining companies, has agreed to merge with Canadian natural resources company Teck Resources. It’s one of the biggest deals ever in the mining industry.

The new company will be called Anglo Teck and will be worth about $53 billion.

Why are the two companies merging?

Both companies make a lot of money from copper. For Teck Resources, copper makes up 65% of its total profit. After the merger, Anglo Teck will be one of the biggest copper producers in the world.

Copper demand is rising fast. This is mainly because it plays a key role in:

  • 🍃 The energy transition: It’s needed for electric car batteries, solar panels, wind farms, and power grids.

  • 💻️ Digital growth: Data centres use copper in their wiring and cooling systems, and more centres are being built as AI use rises.

  • 📶 New tech like 5G: These networks need copper-heavy cables and infrastructure.

The merger is also about cutting costs. The new company expects to save $800 million within four years.

One reason is that both firms already own copper projects in Chile that sit next to each other. By joining forces, they can share roads, ports, pipelines, desalination plants, and technical know-how.

What’s the deal structure?

Both Anglo American and Teck Resources are public companies. Anglo American is listed in London, and Teck Resources is listed in Toronto.

In this deal, no money changes hands — it’s a share-for-share merger.

🤔 What’s a share-for-share merger? It’s when two companies join together and create a brand-new company. But, instead of paying cash, the shareholders of each old company give up their shares and receive new shares in the new company.

So if you owned shares in Company A or Company B, you’d swap them for new shares in NewCo, which now owns both A and B.

Teck shareholders will trade in their Teck shares — those shares are cancelled. Then, for each Teck share traded in, they get 1.33 new shares in Anglo Teck.

Anglo American also folds into Anglo Teck, so its shareholders get shares in the new company too.

After the merger:

  • Anglo American shareholders will own about 62% of Anglo Teck.

  • Teck shareholders will own about 38%.

Has the deal completed?

No, not yet. Anglo American and Teck Resources expect it to close in 12 to 18 months, once regulators approve it.

But the agreement allows either company to change their mind if a better offer comes in. If they walk away, they must pay a $330 million fee.

This opens the door for other mining companies to swoop in. For example, US copper producer Freeport-McMoRan and gold miner Agnico Eagle both have strong share prices. That means they could afford to offer Teck shareholders more than Anglo American is offering (and cover the $330 million exit fee).

However, there’s a catch. The Anglo-Teck deal says the new company will be based in Canada. If a rival wanted to outbid Anglo American, they’d probably also have to agree to move their management team to Canada. Most companies won’t want to do that, which makes rival bids less likely.

What law firms are involved?

Anglo American is being advised by Latham & Watkins.

The law firms advising Teck Resources are Freshfields and Wachtell Lipton.

What’s the big picture effect?

🔽 Simplification trend: This deal shows a wider trend: companies are simplifying.

Anglo American used to run a mix of businesses. But a powerful investor, Elliott Investment Management (a US hedge fund known for pressuring big companies to change), pushed it to slim down.

As a result, Anglo American has been selling off parts of its business. Earlier this year it sold its platinum mines. It is also in the process of selling its coal mines and its 85% stake in De Beers — a famous diamond company.

By merging with Teck, Anglo American can now focus on one main area: copper. Copper is in high demand because it’s essential for things like electric cars, renewable energy, and digital infrastructure.

This shift isn’t unique. Many companies that once spread across industries are now choosing to specialise.

🇬🇧 The UK’s business climate: Anglo American is a FTSE 100 company (one of the 100 largest companies listed on the London Stock Exchange). But after the merger the new group will be based in Canada. Its main stock listing will stay in London, but the leadership will shift abroad.

This is part of a wider trend of global companies reducing their UK presence:

These moves have raised fears that the UK is becoming less attractive for global business. Critics blame political instability, high energy costs, and unclear tax and regulation. Less investment could lead to fewer jobs and less money in UK markets, which could lead to fewer opportunities for law firms.

How can you use this in your applications?

There are a few ways you can use what you learn from Anglo Teck in the application process:

Where to use it?

What to do?

How to say it?

Written applications: e.g. “Tell us about a recent deal you’ve been following”

or…

“What commercial trends affect law firms and their clients?”

Choose either trend depending on the question.

For simplification, highlight Anglo Teck as part of a global shift towards focus.

For the shift away from the UK, stress its potential impact on law firms.

Simplification answer:

“Companies that once diversified are now simplifying to focus on core strengths.

Anglo Teck is an example, and it means lawyers are doing more restructuring work, more competition checks, and giving more strategic advice.”

Shift from the UK:

“The Anglo Teck merger shows how global companies are reducing their UK presence.

The new headquarters will be in Canada, adding to other exits like BHP and Ineos.

For law firms, that means advising clients on cross-border restructurings. Longer term, it could indicate a reduction of deals based in the UK as a result of political and regulatory risks.”

Interviews: e.g. “Tell me about a recent deal”

or…

“What trends are you seeing in M&A?”

You can use Anglo Teck as a clear, concrete example of simplification.

“Anglo American’s merger with Teck stood out because it shows how companies are simplifying.

Anglo has sold platinum, coal, and diamonds, but is now focusing on copper.

For law firms, that means more advisory work on restructurings and competition law issues.”

Case studies / assessment centres: e.g. “Advise your client on whether to spin off, merge, or sell”

Use Anglo Teck as an example of simplification when discussing strategy.

“A recent example is Anglo Teck — a merger driven by a long-term plan to focus on copper.

But it also highlights risk factors: for UK-based companies, political and regulatory pressures can influence where they put their headquarters or invest.”

Networking: informal chats with associates, or partners at open days or events

Ask a question that shows you’ve followed these trends.

“I noticed Anglo Teck will be headquartered in Canada.

Do you think concerns about the UK’s business climate are affecting clients’ decisions?

Will this impact the work available to law firms in the future?”

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IN OTHER NEWS 🗞

  • 🏎️ McLaren Racing is now fully owned by two Middle Eastern investment funds. They bought out the remaining minority investors. The deal puts the team’s value at about £3.5 billion — a huge jump from around £185 million just five years ago. Freshfields advised the buyers, while Morgan Lewis and Hogan Lovells acted for the sellers.

  • 📰 The Lawyer has been bought by Legal Benchmarking Group for £43 million. Leaders at both companies said the move will help grow internationally while keeping The Lawyer’s brand and voice intact. Skadden advised the buyer, while Shoosmiths acted for the seller.

  • 💼 For the first time, Mishcon de Reya has posted profits above £100 million. The firm has tripled in size over the past decade and worked on big cases this year, from advising Wayve on a $1 billion AI investment to winning landmark disputes like the London Capital & Finance trial.

  • 🇮🇹 Ropes & Gray has opened an office in Milan (after hiring three private equity lawyers from Latham & Watkins). It’s the firm’s second new base in Europe this year, after Paris, as it expands to meet rising client demand. Italy is now one of Europe’s fastest-growing private equity markets, with deal volumes more than doubling in 2024.

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  • 📹️ Free application help: If you're applying to commercial law firms, check out my YouTube channel for actionable tips and an insight into the lifestyle of a commercial lawyer in London.

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