LONDON/TORONTO -- China’s antitrust regulator has asked Anglo American to commit to supply the country with a steady flow of copper concentrate as a condition for approving its proposed US$54 billion merger with Canada’s Teck Resources, three people aware of the development said. The demand reflects China’s struggle to feed its vast copper smelting industry, which refines up to 60 per cent of the world’s copper cathodes but faces its worst feedstock shortage in decades. Chinese refined copper output is expected to grow at its slowest pace since at least 2000 this year as smelters compete for raw material, while falling prices for byproduct sulphuric acid squeeze profitability, analysts said. China’s State Administration for Market Regulation has asked for assurances on copper concentrate supply, including volumes sold through traders, said the people, who declined to be named due to the confidential nature of discussions. The regulator has received feedback from Chinese smelters and is now negotiating remedies based on their concerns, one person said. As a major consumer of both companies’ copper, China has effective veto power over the merger, and has historically leveraged its antitrust power over megadeals to extract strict “behavioral remedies” to protect its domestic industrial supply. ‘Good progress’ towards deal Teck declined to comment on regulatory processes. SAMR did not immediately respond to a request for comment. “We are making good progress towards completion and are working constructively with the Chinese regulator, SAMR, through its structured review process,” an Anglo American spokesperson said, declining to provide further details. Both Anglo and Teck have marketing teams in China. Cutting off Anglo Teck’s massive unrefined volumes from the open market could hasten the closure of some Western processing facilities, already under pressure from rising costs, industry analysts said. Operating under state-mandated destination clauses could also accelerate a shift away from traditional annual benchmark pricing, as the industry would likely pivot to index-linked spot pricing, they said. The bulk of Anglo American’s copper output from Peru and Chile is sold as unrefined concentrate to international buyers, including Chinese, Japanese, and European custom smelters. Anglo Teck copper share below threshold The Anglo Teck merger, announced in 2025, has received approval from all regulators where the companies operate except China. Both companies expect the deal to close by March 2027, within 18 months from the announcement. A combination would control around five per cent of global copper supply, below competition thresholds exceeding 10 to 15 per cent. The remedies sought do not include asset sales at this stage, the people said. Anglo’s sale of its nickel assets to China’s MMG illustrates the complexity of navigating multiple jurisdictions. The European Commission has issued an antitrust warning to the Hong Kong-listed company over concerns it may divert ferronickel supply away from European markets. MMG said it is proposing long-term European supply commitments. Executives at Glencore, Anglo American and Rio Tinto have said antitrust reviews and national interest considerations are becoming more prominent factors when assessing potential transactions involving copper and other critical minerals. The trend highlights how resource-hungry nations are increasingly using merger reviews to secure supply of materials essential for the clean energy transition. (Reporting by Clara Denina and Divya Rajagopal; Editing by Veronica Brown and Jan Harvey)
