China seeks copper supply pledges before $54 billion Anglo Teck merger
China’s antitrust regulator has asked Anglo American to guarantee copper concentrate supplies as a condition for approving its proposed $54 billion merger with Teck Resources, Reuters reported Friday. Three people familiar with the talks said China wants assurances covering volumes sold through traders.
The request reflects a severe feedstock shortage among China’s copper smelters. China produces about 60% of global refined copper, while its smelters face tighter concentrate supplies and weaker profitability. The State Administration for Market Regulation is negotiating remedies after receiving feedback from Chinese smelters.
The Anglo Teck deal has cleared regulators in other jurisdictions, leaving China as the final major hurdle. The companies expect completion between September 2026 and March 2027. Reuters said the remedies currently under discussion involve supply commitments rather than asset sales. However, analysts warn that binding destination requirements could affect global copper trade and pressure Western smelters.
Why it matters
The conditions could reshape copper supply flows and affect smelter economics globally. The merger also highlights growing competition for critical mineral supplies.
