Anglo American and Teck Resources Merger – A $70 Billion Bet on Copper's Future

On September 9, the mining world shook.

Anglo American (NGLOY) and Canada's Teck Resources (TECK) unveiled a $70 billion merger to form Anglo Teck, what will be one of the largest miners on Earth.

The timing of this deal couldn't be more telling.

Copper is excellent at conducting electricity. That's why it is used in electrical wiring. And with copper demand surging amid the global electrification push – from electric vehicles ("EVs") to renewable power grids – this deal signals big-money conviction in copper's critical role.

But the story doesn't stop there. Behind the headlines lies a broader energy revolution, one where copper and even nuclear fusion could redefine how power is generated, stored, and delivered.

Today, we'll break down the megamerger and show what it means for the copper market and the broader electrification trend.

Anglo Teck: The Looming Copper Giant

The merger between Anglo American and Teck Resources is the largest mining deal in a decade.

Announced as a $70 billion "merger of equals," it will create Anglo Teck, a global diversified miner powerhouse with headquarters in Vancouver. If approved, the company would be the world's fifth-largest copper miner and the second-largest publicly traded.

The deal is expected to generate about $800 million in annual synergies, from cost savings to operational efficiencies. The merger also includes $4.5 billion in spending commitments in Canada and opens the door for major new projects.

Teck shareholders will receive Anglo stock, leaving Anglo investors with about 62% ownership and Teck shareholders with 38%.

While still pending shareholder and regulatory approval, the deal has been welcomed by markets. Teck's stock jumped 14% in Toronto, while Anglo rose more than 9% in London on the news.

For both companies, this is less about diversification and more about concentrating on copper – the essential metal of electrification.

Why Copper Is the Backbone of the Global Energy Transition

In 2024, copper accounted for about 61% of Teck's revenue. For Anglo, copper made up roughly 60% of its business in the first half of 2025.

After the merger, Anglo Teck expects to push that figure closer to 70%.

That level of concentration in a single metal isn't an accident. It's arguably the whole point of the deal.

Copper has quietly become the backbone of the global energy transition. The red metal is everywhere – in EVs, renewable-power systems, and the wires and transformers that knit modern power grids together.

It takes up to four times as much copper to build an EV compared with a traditional car. And offshore wind farms consume about 10 times more copper per megawatt than gas-fired power plants.

And every new mile of high-voltage transmission line is basically copper stretched across the landscape.

This has led some to call copper the "new crude oil".

Why Anglo and Teck Are Betting on Copper Now

The timing of this deal is telling.

Analysts have been warning of a looming copper supply crunch. Decades of underinvestment mean many of the world's copper mines are old, depleting, or tied up in endless permitting battles.

Even Teck's flagship Quebrada Blanca project in Chile – one of the largest new copper developments in the world – has been dogged by cost overruns and operational setbacks.

That's why Anglo Teck matters. Its sheer scale will bring efficiency. With a combined balance sheet, the new company can pool resources, unlock synergies (estimated at $800 million a year), and stabilize projects that might overwhelm a smaller firm.

Most of all, it sends a message: The mining industry is gearing up for a world that will need a lot more copper than it currently produces.

And it's making that bet now, before the supply gap becomes unbridgeable.

The Bigger Energy Picture: Enter Amazon Helios

Copper is one critical piece of a story much bigger than "just" the energy transition.

Stansberry Research has been following what analyst Whitney Tilson calls "Amazon Helios" – nuclear fusion power.

Unlike fission, which splits atoms, fusion joins them... the same process that takes place in the core of stars.

If commercialized, it could deliver limitless, zero-emission energy without long-lived radioactive waste. Bloomberg estimates the market could reach $40 trillion, far larger than AI, EVs, robotics, or quantum computing.

While the technology is still nascent, it is no longer merely theoretical.

In 2022, U.S. scientists achieved "ignition" – a fusion reaction that produced more energy than it consumed.

Since then, funding has surged. Startups are signing power contracts, including Helion Energy's deal to supply Microsoft by 2028.

Last month, AI chipmaker Nvidia (NVDA) joined Morgan Stanley, Stanley Druckenmiller, and a consortium of a dozen Japanese companies to invest $863 million in fusion startup Commonwealth Fusion Systems.

What once seemed far-fetched is edging closer to reality.

Copper and Fusion: Two Sides of the Same Energy Coin

Copper mining and nuclear fusion may seem worlds apart, but they're closely linked.

Copper is the wiring of the modern world. From EV motors to transmission lines, nothing moves electricity without it. That won't change in the fusion era.

Building reactors requires thousands of miles of copper wiring and alloys for magnets, cooling, and power systems. And once reactors generate power, grids made of copper will carry it.

Fusion is still on the horizon. In the meantime, governments and corporations are electrifying vehicles, factories, homes, and data centers. All of it needs copper, often at multiples of traditional demand.

Even the AI boom depends on copper – companies like Vertiv supply the cooling, but copper wiring and transformers deliver the electricity.

The energy transition has two acts: copper, the practical metal enabling electrification today, and fusion, the future source of abundant clean energy.

Anglo Teck's $70 billion merger signals we are headlong into Act 1.

Where Investors Can Profit From Copper and Fusion Today

The recent news presents a two-sided opportunity.

On one side is copper – the established commodity growing more essential by the day.

Anglo Teck's merger shows executives expect demand to surge. They're consolidating now, betting billions that copper will remain the backbone of electrification.

On the other side is fusion – the ultimate destination of the energy transition. It could unlock a $40 trillion market, though it's still early and volatile.

Most leading fusion ventures remain private, out of reach for everyday investors. But research points to indirect opportunities.

Whitney Tilson highlights one little-known-firm investing in multiple fusion startups, giving everyday investors a "back door" into this revolution. CNBC already calls it a leader in the space.

That company is also positioned for today's AI-driven energy needs, planning natural gas plants to power U.S. data centers equal to more than three million homes. Financially, it's among the most profitable businesses in the world.

These aren't competing paths. Copper is perhaps the more practical play for today. Fusion is the moonshot for tomorrow.

Both matter for investors seeking to understand where capital, technology, and opportunity are converging.

Regards,

John Robertson