Dan Coatsworth, head of markets at AJ Bell, said: “Shareholders have approved the merger of Anglo American and Teck, marking a new chapter in the top tier of the mining industry.
“Now comes the hard part – living up to the hype at the heart of the merger rationale.
“Big deals are notoriously value-destructive, either because management over-estimated cost synergies, culture clashes rear their ugly head, or financial returns fall short.
“The combined Anglo/Teck group will be a big player in the copper market, where the outlook for the metal price is red hot.
“It just needs to be able to capitalise on the market opportunity and not be derailed by production issues, such as labour strikes, lower than expected ore grades or processing problems.”
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