Mining News: News Nuggets: Teck, Antofagasta deny merger

Bloomberg Business March 30 reported rumors that Teck Resources Ltd. and Antofagasta Plc are exploring a merger that would create one of the world’s largest copper producers. Attributing the sources of its report to people wishing not to be identified for divulging private information, Bloomberg said any agreement between the two miners hinges on families that control each company. The Luksic family of Chile owns 65 percent of Antofagasta. According to Bloomberg, Teck Resources is “backed by the Keevil family and Japan’s Sumitomo Metal Mining Co.” Teck shares on the New York Stock Exchange were valued at US$8 billion at the time of the Bloomberg report but quickly jumped 10 percent to US$8.8 billion following speculation of a potential merger. Antofagasta, listed in London, is valued at around US$10.8 billion. Responding to the report, both Teck and Antofagasta denied that the companies were in discussions on a potential merger. At March 31, Teck’s stock had returned to a price level comparable to before the Bloomberg report.

- Shane Lasley