{"id":1407,"date":"2025-12-03T14:26:48","date_gmt":"2025-12-03T14:26:48","guid":{"rendered":"https:\/\/matabeletoday.com\/?p=1407"},"modified":"2025-12-03T14:26:52","modified_gmt":"2025-12-03T14:26:52","slug":"canada-gains-sa-loses-in-anglo-deal","status":"publish","type":"post","link":"https:\/\/matabeletoday.com\/?p=1407","title":{"rendered":"Canada gains, SA loses in Anglo deal"},"content":{"rendered":"\n

JOHANNESBURG<\/strong> – A WAVE of alarm is rippling through South Africa\u2019s mining and investment community as Anglo American moves ahead with a proposed US$60 billion merger with Canada\u2019s Teck Resources \u2014 a deal critics say will accelerate Anglo\u2019s withdrawal from South Africa and hand disproportionate benefits to Canada.<\/strong><\/p>\n\n\n\n

Announced on 9 September, the planned all-share, nil-premium transaction would create a new entity, Anglo Teck, with its global headquarters in Vancouver.<\/p>\n\n\n\n

While the companies publicly describe it as a \u201cmerger of equals,\u201d analysts and former executives argue it is anything but.<\/p>\n\n\n\n

Anglo American\u2019s market capitalisation stands at roughly US$42 billion \u2014 more than double Teck\u2019s US$20 billion \u2014 and Anglo generates more than three times Teck\u2019s annual revenue.<\/p>\n\n\n\n

Yet under the agreement, Teck\u2019s influence would dramatically outweigh its economic contribution. Anglo Teck\u2019s board will be chaired by Teck\u2019s Sheila Murray, a large portion of senior executives will be based in Canada, and the group has committed to invest C$4.5 billion (R55 billion) into Canada over five years. By contrast, Teck\u2019s Canadian operations accounted for only 3.4% of the combined entity\u2019s 2024 revenue.<\/p>\n\n\n\n

The merger comes at the end of a long period of disposals by Anglo CEO Duncan Wanblad, who has shed major South African assets including its stake in Valterra Platinum earlier this year.<\/p>\n\n\n\n

After the Teck deal, Anglo Teck\u2019s only remaining local asset would be Kumba Iron Ore, raising widespread expectations that Kumba will be sold or demerged \u2014 a move analyst at JP Morgan say is likely as the combined entity pivots to a copper-pure-play strategy.<\/p>\n\n\n\n

In just a decade, Anglo\u2019s presence in South Africa has fallen from 88,661 employees to the brink of a complete exit.<\/p>\n\n\n\n

Founded in 1917, the group once dominated the South African economy, controlling companies worth 43% of the JSE\u2019s market capitalisation in 1994.<\/p>\n\n\n\n

The proposed merger, commentators warn, represents the final dismantling of what was once the country\u2019s most influential corporate empire.<\/p>\n\n\n\n

The deal is facing tough scrutiny in Canada, where Prime Minister Mark Carney and Industry Minister M\u00e9lanie Joly have pushed for commitments that would expand the country\u2019s influence over the new company.<\/p>\n\n\n\n

Canada has insisted that the combined group move its headquarters to Vancouver, increase local employment guarantees, and align with its critical minerals’ strategy.<\/p>\n\n\n\n

Business analysts say these concessions give Canada disproportionate leverage considering that over 90% of Anglo Teck\u2019s future revenue will come from developing countries \u2014 including South Africa, Chile, Peru, and Brazil.<\/p>\n\n\n\n

Meanwhile, commitments to South Africa are markedly modest. Anglo has reiterated its plan to invest R11.2 billion in new processing technology at the Sishen mine and R600 million into a junior exploration fund with the IDC \u2014 investments first announced years ago and not contingent on the Teck deal.<\/p>\n\n\n\n

The Canadian investment pledge, by contrast, is seven times larger.<\/p>\n\n\n\n

Industry experts and civil-society organisations are now urging the South African government to oppose the merger and take steps to reclaim strategic mineral assets before they are fully lost to foreign control.<\/p>\n\n\n\n

Anglo\u2019s remaining South African assets \u2014 Kumba, Samancor and De Beers Consolidated Mines \u2014 generated US$1.6 billion in 2024 EBITDA, accounting for more than 22% of Anglo\u2019s total (excluding Valterra).<\/p>\n\n\n\n

A growing policy proposal suggests demerging these assets into a state-led, publicly listed mining company, with the Public Investment Corporation (PIC), Industrial Development Corporation (IDC), community trusts, and workers holding a combined 50% stake.<\/p>\n\n\n\n

Based on current market valuations, Anglo\u2019s South African portfolio is estimated at R150 billion, giving the PIC alone a potential 34.5% stake in a new national mining champion.<\/p>\n\n\n\n

As Canada tightens its grip on the future of Anglo Teck, pressure is mounting on Pretoria to intervene before Kumba and South Africa\u2019s remaining strategic assets are cast adrift.<\/p>\n\n\n\n

Without decisive action, critics warn, the country risks losing control of a century-old mining legacy \u2014 and the jobs, revenues and sovereignty tied to it.<\/p>\n\n\n\n

– CAJ News<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

JOHANNESBURG – A WAVE of alarm is rippling through South Africa\u2019s mining and investment community as Anglo American moves ahead with a proposed US$60 billion merger with Canada\u2019s Teck Resources \u2014 a deal critics say will accelerate Anglo\u2019s withdrawal from South Africa and hand disproportionate benefits to Canada. Announced on 9 September, the planned all-share, […]<\/p>\n","protected":false},"author":2,"featured_media":1408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,51,97,94],"tags":[241,240,242],"class_list":["post-1407","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-companies","category-mining-mining","category-mining","tag-anglo-american-corporation-head-office","tag-johannesburg","tag-south-africa"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1-150x150.jpg","medium":"https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1-300x199.jpg","medium_large":"https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1.jpg","large":"https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1.jpg","1536x1536":"https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1.jpg","2048x2048":"https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1.jpg","post-thumbnail":"https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1.jpg"},"magazineBlocksPostAuthor":{"name":"administrator","avatar":"https:\/\/secure.gravatar.com\/avatar\/a3d5ebfe727f13fb325bd400aaaf5e789d3e2e20898883d9ae8e3d3d42d58cef?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"JOHANNESBURG – A WAVE of alarm is rippling through South Africa\u2019s mining and investment community as Anglo American moves ahead with a proposed US$60 billion merger with Canada\u2019s Teck Resources \u2014 a deal critics say will accelerate Anglo\u2019s withdrawal from South Africa and hand disproportionate benefits to Canada. Announced on 9 September, the planned all-share, […]","magazineBlocksPostCategories":["Business","Companies","Mining","Mining"],"magazineBlocksPostViewCount":40,"magazineBlocksPostReadTime":4,"magazine_blocks_featured_image_url":{"full":["https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1.jpg",480,319,false],"medium":["https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1-300x199.jpg",300,199,true],"thumbnail":["https:\/\/matabeletoday.com\/wp-content\/uploads\/2025\/12\/Anglo-American-1-150x150.jpg",150,150,true]},"magazine_blocks_author":{"display_name":"administrator","author_link":"https:\/\/matabeletoday.com\/?author=2"},"magazine_blocks_comment":0,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/a3d5ebfe727f13fb325bd400aaaf5e789d3e2e20898883d9ae8e3d3d42d58cef?s=96&d=mm&r=g","magazine_blocks_category":"Business<\/a> Companies<\/a> Mining<\/a> Mining<\/a>","_links":{"self":[{"href":"https:\/\/matabeletoday.com\/index.php?rest_route=\/wp\/v2\/posts\/1407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/matabeletoday.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/matabeletoday.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/matabeletoday.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/matabeletoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1407"}],"version-history":[{"count":1,"href":"https:\/\/matabeletoday.com\/index.php?rest_route=\/wp\/v2\/posts\/1407\/revisions"}],"predecessor-version":[{"id":1409,"href":"https:\/\/matabeletoday.com\/index.php?rest_route=\/wp\/v2\/posts\/1407\/revisions\/1409"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/matabeletoday.com\/index.php?rest_route=\/wp\/v2\/media\/1408"}],"wp:attachment":[{"href":"https:\/\/matabeletoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/matabeletoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/matabeletoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}