Why Did Teck Resources Stock Jump 24% After-Hours Today?

The Canadian miner is an acquisition target, and a deal could be announced as early as this week.

U.S.-listed shares of Teck Resources (TECK) jumped nearly 24% in extended trading on Monday after reports said that Anglo American was nearing a deal to buy the copper miner.

According to a Bloomberg News report, citing people familiar with the matter, Anglo American is in advanced talks to acquire Teck, and it could announce a transaction as early as this week.

Anglo American is reportedly looking to pay mostly in stock. However, the report also stated that the timing and structure of any deal might change, and negotiations could still end without an agreement.

Teck’s Toronto-listed shares have slumped nearly 20% over the past year, amid operational difficulties, and the company is valued at about $17.1 billion. Anglo American shares have gained approximately 15% over the same period, resulting in a market capitalization of $36.4 billion.

Retail sentiment on Stocktwits about Teck was in the ‘bullish’ territory at the time of writing, while retail chatter rose to ‘high.’

Both companies have recently been takeover targets, with Anglo American rejecting a $49 billion offer from BHP Group last year, while Teck rebuffed acquisition efforts by Glencore. The megadeal will be one of the biggest ever in the mining industry and would make Anglo American less vulnerable to takeovers.

One Stocktwits user wondered if there would be a rival bid for Teck from the likes of Freeport-McMoRan.

Teck had produced 446,000 tonnes of copper in 2024, and if the deal goes through, the combined company’s output of the red metal will exceed 1 million tonnes. The Canadian miner is involved in four mining projects, including the giant Quebrada Blanca project in Chile, which is located close to Anglo American’s Collahuasi mine.

Teck, which the founding Keevil family controls, has drawn acquisition interest ever since it sold its coal assets. The family controls Teck through “supervoting” Class A shares. A deal will also require the approval of the Canadian government, which had stated last year that a foreign buyout of Canadian critical element miners will be approved “in the most exceptional of circumstances.”

Copper is a key element in energy transition and is expected to see a continued upward rise in prices for years to come.

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