‘Anglo–Teck merger gives all the benefits to Canada and accelerates Anglo’s exit from SA’
Economist and public policy analyst Duma Gqubule released a landmark report warning that the proposed USD $60 billion merger between Anglo American and Canada’s Teck Resources will accelerate Anglo’s exit from South Africa, transfer value to Canada, and leave South Africa with diminished ownership of its mineral endowments, fewer jobs, and reduced long-term economic benefit.
The report, titled Bring Back Our Minerals and Stop the Merger Between Anglo American and Teck Resources,provides a detailed analysis of the proposed transaction, its macro-economic implications, and policy options available to South Africa, including a call for a state-led mining holding company with majority public ownership.
Key Findings of the Report
- The merger is not a “merger of equals”
Anglo American is roughly double the size of Teck Resources, with a market capitalisation of USD $42 billion compared to Teck’s $20 billion, and significantly higher revenues and earnings.
- The benefits are disproportionately skewed toward Canada
Despite Canada representing as little as 3.4% of combined revenues, the merger includes major concessions to Canadian regulators, including:
- Moving Anglo Teck’s headquarters to Vancouver
- A primary listing in London with additional listings in Toronto and New York
- A substantial number of board and executive positions to be held in Canada
- A commitment to invest CAD $4.5 billion (R55 billion) in Canada over five years
- South African commitments are minimal and pre-existing
Anglo highlights a planned R11.2 billion investment in Sishen and R600 million exploration fund in partnership with the IDC, but these projects were announced years ago and are not tied to the merger. The investment planned for Canada is seven times larger.
- Anglo American could end up with no employees in South Africa
Following asset disposals and restructuring, Anglo Teck may retain only one asset in South Africa — Kumba Iron Ore — which analysts believe will eventually be sold. During 2024, Anglo employed 14,766 people in South Africa, down from 88,661 a decade earlier.
- Public institutions have significant exposure
South Africa’s Public Investment Corporation (PIC) and Industrial Development Corporation (IDC) collectively hold holdings worth R68.8 billion in Anglo and Kumba, and would face the economic and social fallout of the merger.
Policy Recommendations
The report argues that this trajectory represents a loss of industrial capacity, economic agency, and national sovereignty, and is inconsistent with national development objectives.
The report argues that South Africa must block the merger and pursue a strategy to reclaim national ownership of mineral wealth, proposing a new state-led mining company with public, worker, and community equity.
Quote from Duma Gqubule (Report author)
“This merger will provide a final death knell to Anglo in South Africa. It will transfer wealth and strategic control to Canada while leaving South Africa with a shell of its former mining economy. We must stop the merger, and we must bring back our minerals.”
“Why does Canada, a country that is not even a shareholder in Anglo Teck and contributes so little to its revenues have such a large say over the fortunes of a company that will derive more than 90% of its revenues from four countries that are in the Global South? What right does Anglo Teck have to play monopoly with the natural resources of South Africa, Chile, Peru and Brazil? Botswana and Namibia are also affected because Anglo is in talks to sell De Beers. Before Anglo discards Kumba, South Africa must stop its takeover of Teck and bring back our minerals.”
