Key facts
- China's antitrust regulator has requested Anglo American commit to steady copper concentrate supply to the country.
- The demand is a condition for approving the proposed $54 billion merger between Anglo American and Teck Resources.
- China's copper smelting industry faces its worst feedstock shortage in decades.
- Chinese refined copper output is expected to grow at its slowest pace since at least 2000.
- The merger would control around 5% of global copper supply, below competition thresholds.
- Remedies sought do not include asset sales at this stage.
China's antitrust regulator has asked Anglo American to commit to supplying the country with a steady flow of copper concentrate as a condition for approving its proposed $54 billion merger with Teck Resources, according to three people familiar with the matter. This demand highlights China's ongoing struggle to secure raw materials for its vast copper smelting industry, which refines up to 60% of the world's copper cathodes but is facing its most severe feedstock shortage in decades.
Analysts note that Chinese refined copper output is projected to grow at its slowest pace since at least 2000 this year, as smelters face intense competition for raw materials and declining prices for byproduct sulfuric acid squeeze profitability. The State Administration for Market Regulation (SAMR) has requested assurances on copper concentrate supply, including volumes sold through traders, and is currently negotiating remedies based on concerns raised by Chinese smelters.
As a significant consumer of both companies' copper, China holds effective veto power over the merger. Historically, China has utilized its antitrust authority in megadeals to secure strict behavioral remedies aimed at protecting its domestic industrial supply. An Anglo American spokesperson stated that the company is making good progress towards completion and is working constructively with SAMR through its review process.
While the merger has received approval from all other necessary regulators, China's SAMR has yet to give its consent. Both Anglo American and Teck Resources expect the deal to close by March 2027. The combined entity would control approximately 5% of global copper supply, which is below the competition thresholds typically exceeding 10% to 15%. At this stage, the remedies sought do not include asset sales.