Anglo-Teck Controls Just 5% of Copper Yet China Wants Guarantees Before Merger Approval

China’s final regulatory review of the $54 billion Anglo American-Teck Resources merger is focusing on access to copper concentrate rather than asset divestitures, according to Reuters, putting physical supply at the center of approval for a combination expected to control only about 5% of global copper supply.

China’s State Administration for Market Regulation has asked Anglo American for assurances that the combined company will maintain a steady flow of copper concentrate into China, Reuters reported Friday, citing three people familiar with confidential discussions. The requested assurances would cover volumes sold directly and through traders.

One source told Reuters that SAMR has received feedback from Chinese smelters and is negotiating potential remedies around those concerns. The sources said asset sales are not currently part of the requested remedies.

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“We are making good progress towards completion and are working constructively with the Chinese regulator, SAMR, through its structured review process,” an Anglo American spokesperson told Reuters.

The merger, announced on September 9, 2025, would create Anglo Teck, headquartered in Vancouver. The companies said at announcement that the combined miner would produce about 1.2 million tonnes of copper annually, rising to roughly 1.35 million tonnes in 2027, while giving investors more than 70% exposure to copper. Anglo shareholders are expected to own about 62.4% of the company and Teck shareholders about 37.6%.

Canada has already attached its own binding commitments to the transaction. Ottawa approved the deal under the Investment Canada Act in December 2025 after Anglo and Teck committed to spend at least $4.5 billion in Canada over five years and at least $10 billion over 15 years. The combined company also committed to keep its global headquarters in Canada and maintain a TSX listing.

China’s review comes as its smelting industry faces a sharp raw-material squeeze. China refines up to 60% of global copper cathodes, while Reuters reported this week that refined copper output is expected to grow only 3% to 3.4% in 2026, down from 10.4% growth in 2025. Limited concentrate and scrap availability, weaker sulphuric acid economics, and planned smelter maintenance are constraining output.

Anglo said in July that China remained the final outstanding antitrust approval. The companies continue to target completion within their original September 2026 to March 2027 window.

Any supply commitment ultimately agreed with SAMR would sit alongside long-term investment and headquarters obligations already secured by Canada.

Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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