Anglo American’s (OTC:NGLOY) planned merger with Teck Resources (NYSE:TECK) would create a combined company with a pro forma market capitalisation of about $56 billion and targeted annual pre-tax synergies of $2.2 billion, according to J.P. Morgan.
The analysts led by Dominic O’Kane estimated the pre-tax synergies carry a net present value of $7 to 8 billion, equivalent to 12 to 14% of the group’s size.
