Anglo American, of the FTSE 100 index, and the Canadian group Teck Resources, would like you to think of their proposed $53bn (£39bn) combo as “a true merger of equals”, which it obviously isn’t because the UK-listed company is about twice the size. Anglo’s shareholders, even after they’ve been paid $4.5bn via a special dividend to even up the ratios a bit, will still emerge with 62.4% of the new company.
But it is a merger in the sense that Anglo isn’t paying a meaningful takeover premium to get the deal done – just a token one of 2%. That looks a smart piece of deal-making on the part of Anglo’s chief executive, Duncan Wanblat.
