Latham, Wachtell and Freshfields steer $50bn mining mega merger

Latham, Wachtell and Freshfields are advising on the $50 billion mega merger of mining companies Anglo American and Teck Resources, forming a new critical minerals giant in one of the sector’s largest-ever deals.

The combined group, to be named Anglo Teck, will be headquartered in Vancouver with a primary listing in London and secondary listings in Johannesburg, Toronto and New York. The transaction, expected to complete within 12-18 months, marks another setback for the UK mining sector after BHP's departure for Australia three years ago.

Behind the deal

The move will see Anglo American shareholders take a 62.4% stake in the combined business, with Teck investors owning the remainder, while the board will be split evenly between the two businesses.

It follows a turbulent period for FTSE 100 heavyweight Anglo American. Last May, it enlisted Linklaters to fend off a series of takeover approaches - the largest offering £39 billion - from Slaughters-advised BHP, before instead announcing a radical restructuring to refocus on copper and iron ore.

Since then it has made a number of moves to streamline its business. In June, Linklaters and Macfarlanes advised on Valterra Platinum’s £7.5 billion demerger from Anglo and London listing, while last November Latham secured what was reportedly its first public mandate for the mining giant when it advised on the sale of its steelmaking coal business to Peabody for up to $3.8 billion.

Advising

Latham & Watkins is advising Anglo American, alongside Canadian firm Torys and South African firm Webber Wentzel, which has a long-standing alliance with Linklaters.

Latham’s team is co-led by corporate partners Charles Ruck (New York/Orange County) as well as Sam Newhouse and Ed Barnett (London). They were assisted by corporate partners Andrew Elken (New York), Anna Ngo (London) and Andrew Clark (Los Angeles).

Wachtell and Freshfields are acting for Teck, alongside Canadian firm Strikeman Elliott.

The Freshfields team is led by London-based energy and infrastructure partner Jessamy Gallagher, with corporate partner Stephen Hewes also assisting.

Infrastructure star Gallagher was recruited from Paul Hastings in a high-profile move earlier this year.