He Agreement of $ 50,000 Million this week between Anglo American and TECK Resources It has its roots in the Altiplane of the Tarapak region in Chile, where each of them has a giant copper playground, divided by only a few kilometers.
Combine the collahuasi mines and Quebrada Blanca, Whose manufacturing companies plan to integrate through a 15 -kilometer conveyorThere was a dream of consecutive executive generations, given the impulse of production that will bring the overall processing installation.
That without the operation of the potential caused the company’s executives “started talking,” said Anglo Vanbed Executive Director at Financial Times. “When we continued to talk, the logic of corporate merger was increasing for both.”
Anglo and TECK also had something in common: both recently rejected Enemy acquisition attempts and experienced strategic restructuring Focus on copper.
If Anglo dismissed an offer of 39,000 million pounds ($ 52.8 billion) last year, he made a Radical Corporate restructuring for sale of insignificant assets of coal, dam and diamond. Text, rejecting a hostile offer of $ 23,000 from Gleankar, sold their carbon assets More focus on metals.
“We have worked with additional strategies in the last two years,” said Jonathan Price, CEO of Teck. “If there were enough progress for both sides, the combination was logical.”
But while initial support shareholders It seems strong, bankers and advisers warn that the agreement is of interest from the opponents who can interrupt it.
Prices for shares of both companies They shot after adWhich bankers are attributed to market expectations to offer possible acquisition. “With this agreement already on the market, time works,” one said. “It puts both companies on the map.”
Six copper mines owned by TECK and Anglo are valuable rewards at a time when the mining sector fights for the production of more red metal used in electrical networks, wiring and renewable energy.
The combination of “Anglo Teck” is preparing to become one of Five main miners in the world, annual production of 1.35 million tons per year. If the agreement is shown, it will be the most important in the mining for this decade.
Companies such as BHP and Rio Tinto should consider whether to offer Anglo or TECK, according to George Chevel, a portfolio manager in Ninet One.
“Both (Rio and BHP) will have to decide and will also depend on what the other side does,” he said. “Perhaps someone will say: we must wait for the agreement to close and then analyze it.”
Industry in motion
Anglo will exchange 1.33 of its actions on each TECK actionEssentially, the zero agreement, resulting in a company that will belong to 62% of Anglo shareholders and also manages Wanblad.
However, the structure leaves both vulnerable companies against competitors who can make the best offers with cash components, offering shareholders more immediate profits.
The agreement also comes at a time when both companies are experiencing difficulties.
He Over the last year price TECK stock has dropped by 20%mainly with -ww Print in Quebrada BlancaYour emblematic project. The company that has reduced its recommendations this year, the product of waste management problems that reduced the production in the mine, announced last week to suspend all other investments to focus on solving problems.
Meanwhile, the asset sales program has recently suffered several disappointments. Last year, PEABOD ENERGY tried to stop the purchase of coal mines after the blast in one of the projects. And the sale of the “Diamond Company Beers” Anglo is of little interest from the long -lasting diamond industry.
But the advisers participating in the Anglo -e -thetees, believe that any attacker can defeat, partly from -was Careful work made by companies to prepare regulators and shareholders.
According to companies, both companies learned lessons after failed offers from their competitors. The Glencore proposal to TECK failed without receiving the approval of most shareholders, the Kiwill norm, and caused the nationalist reaction of the Canadian government, which eventually strengthened the law on acquisition.
In recent months, Wanblad has avoided these obstacles that have been constantly traveled to Canada, meeting with the regulators and promising to transfer the headquarters to Vancouver. The announcement this week included a list of commitments to the country, including 4.5 billion dollars of dollars ($ 3,550 million) in investment.
Exactly the same The BHP offer for Anglo was harmful without receiving the most important shareholder Anglo, the state -owned state investment corporationAnd for public indignation formed in the country for attempting to acquire. On this occasion, Wanblad met Pic in advance, and the fund showed its original support for the operation.
“The least significant aspects of the agreement were considered much more, and it was a very good plan,” said Richard Hatch, Berenberg analyst. “In my opinion, the history of these companies, in particular in Canada and South Africa.”
Last week, the progress of the Anglo restructuring efforts – which sold the last part of its participation in the Valterra Platinic Business – also led to a simpler company that facilitated the contracts.
Analysts say these sales programs could make both companies more likely to acquire, but instead the fusion of a small favorite will help protect against unwanted grooms.
“This is a good Anglo -game that goes to Zigzag when the market was waiting for a sudden change,” said Peel Hunt analysts. “After all, the attack is the best defense.”
