China’s antitrust regulator has set a condition for approving the $54 billion Anglo American–Teck Resources merger. The companies are expected to make commitments on stable copper concentrate supplies to the country. This reflects China’s push to secure raw materials for its smelting industry, which processes up to 60% of the world’s copper cathode output but is facing its worst feedstock shortage in decades.
China’s State Administration for Market Regulation has requested guarantees on concentrate volumes, including those sold through traders. The regulator has already gathered input from Chinese smelters and is now discussing with the deal’s parties measures that account for their interests.
This is a pivotal issue for Anglo American and Teck. China is a major copper customer for both companies, effectively giving it veto power over the merger. The regulator has repeatedly used its antitrust authority in major deals to negotiate strict behavioral conditions aimed at protecting domestic supply.
According to sources, asset sales are not on the table at this stage — the discussion concerns supply commitments specifically.
Anglo American said it has made good progress in negotiations and is working constructively with the regulator. Teck declined to comment on the proceedings, and SAMR did not respond to a request for comment.
The deal, announced in 2025, has received approval from all regulators except China’s. Closing is expected by March 2027. The combined company would control about 5% of global copper supply, below the 10–15% competition thresholds.
Most of Anglo American’s copper from Peru and Chile is sold as unprocessed concentrate to international buyers, including Chinese, Japanese, and European smelters. If significant volumes are diverted from the open market under state directives, it could accelerate the closure of some processing capacity in the West, which is already struggling with rising costs. Analysts also suggest that a shift toward mandated supply destinations could push the industry away from annual benchmarks and toward index-based spot pricing.
China’s demand is a vivid example of how resource-dependent countries are increasingly using merger reviews to secure supplies of critical raw materials. Executives at Glencore, Anglo American, and Rio Tinto have already noted that antitrust reviews and national-interest considerations are becoming increasingly significant factors in evaluating deals involving copper and other strategic minerals.
Source: Reuters
Image: Minera Collahuasi
