Miners Deny Exploring Huge Merger

(RTTNews) - Miners Antofagasta Plc. (ANFGY.PK, ANTO.L) and Teck Resources Ltd. (TCK_A.TO, TCK) have denied media speculation that the two were in merger talks to create a copper producer giant.

According to a report that appeared in Bloomberg, the two firms held early-stage talks for a merger. There is no guarantee on reaching a deal, the report added, stating that any agreement depends on the approval of the families that control both miners.

Teck is backed by the Keevil family and Japan's Sumitomo Metal Mining Co. Antofagasta is controlled by Chile's Luksic family.

London-listed Antofagasta has a market capitalization of 7.35 billion pounds, and Teck's B shares that are listed on the Toronto Stock Exchange have a market cap of C$11.24 billion.

Both companies have extensive copper operations in Chile. A combination between them could cut costs.

Teck said in a statement that "...it is not in discussions with Antofagasta in relation to any form of transaction, and there are no other corporate developments that justify any significant movement in its share price."

ANTO.L climbed 3.4 percent Monday to settle at 739.50 pence. Meanwhile, Teck shares surged 11.3 percent to close at C$19.45.