Anglo American Agrees to Buy Teck in Deal Reshaping Mining (5)

Anglo American Plc has agreed to acquire Canada’s Teck Resources Ltd., creating a more than $50 billion company in one of the biggest mining deals in over a decade.

Anglo will pay 1.3301 shares for each Teck share, in a deal that would represent a 17% premium to the Canadian miner’s closing share price on Monday, according to Bloomberg calculations. But Anglo will also pay its investors a $4.5 billion special dividend ahead of the combination, meaning that the effective premium would be just 1%. The companies on Tuesday presented it as a zero-premium transaction.