China demands copper supply commitments for Anglo Teck merger approval, sources say
TECK•China’s antitrust regulator has asked Anglo American to commit to a steady flow of copper concentrate as a condition for approving its proposed $54 billion merger with Teck Resources. The regulator’s requested remedies do not include asset sales at this stage.
1. Supply commitments sought
China’s State Administration for Market Regulation has asked Anglo American for assurances on copper concentrate supply, including volumes sold through traders, three people familiar with the discussions said. The regulator is negotiating remedies after receiving feedback from Chinese smelters, one person said.
2. Deal review and supply
Anglo American said it is making “good progress” toward completion and working constructively with the Chinese regulator. China is the only jurisdiction where the merger has not received approval; both companies expect the deal to close by March 2027. The combined company would control around 5% of global copper supply, below competition thresholds exceeding 10% to 15%.
3. Pressure on smelters
China’s copper smelters face their worst feedstock shortage in decades. Chinese refined copper output is expected to grow at its slowest pace since at least 2000 this year, while lower prices for byproduct sulphuric acid are squeezing smelter profitability, analysts said.
