China Seeks Copper Supply Guarantees to Approve Anglo American-Teck Merger, Sources Say

China's market regulator has asked Anglo American to guarantee a steady supply of copper concentrate to the country as a condition for approving its proposed $54 billion merger with Teck Resources, according to three people familiar with the discussions.

Regulatory Demands

The State Administration for Market Regulation (SAMR) is seeking assurances on copper concentrate volumes, including those sold through traders, the sources said. This demand follows feedback from Chinese smelters, who are concerned about raw material availability. China is the last remaining jurisdiction to approve the deal, which was announced in 2025 and is expected to close by March 2027.

An Anglo American spokesperson stated the company is "making good progress towards completion and are working constructively with the Chinese regulator." Teck Resources declined to comment on the regulatory process, and SAMR did not immediately respond to a request for comment, according to Reuters.

Market Impact and Context

The condition reflects the significant pressure on China's copper industry, which refines up to 60% of the world's copper cathodes but is currently facing one of its most severe feedstock shortages in decades. By leveraging its antitrust power, Beijing aims to secure essential raw materials for its domestic industries, a strategy it has used in previous large-scale mergers.

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Industry analysts note that locking in a significant portion of the new entity's unrefined copper for China could have several effects:

• It could increase pressure on Western processing facilities already struggling with high costs.
• It may accelerate a market shift away from traditional annual benchmark pricing toward more flexible index-linked spot pricing.

Strategic Importance of Copper

A combined Anglo American and Teck would control approximately 5% of the global copper supply, a figure below the typical 10% to 15% threshold that triggers major competition concerns. The remedies sought by China are reportedly "behavioural," focusing on supply commitments rather than asset sales at this stage.

This development highlights a growing global trend where nations are using merger reviews to secure access to critical minerals like copper, which are vital for the clean energy transition. Executives from major mining firms have noted that antitrust reviews and national interest considerations are becoming increasingly important factors in potential transactions.