• SAMR communicated concerns in early September
• Review focuses on copper supply security, TC/RC pricing
• Deal parties have proposed behavioural remedies

Anglo American has entered remedy negotiations with China’s antitrust regulator for its proposed acquisition of Teck Resources, according to two sources familiar with the matter.

The State Administration for Market Regulation (SAMR) has formally communicated its competition concerns regarding the case to the deal parties, the sources said. The communication took place around early September, the first source said.

SAMR’s concerns are primarily focused on the stability of copper concentrate supply to Chinese smelters and related pricing issues, particularly treatment and refining charges (TC/RCs), the first source added. TC/RCs are the fees smelters charge miners to process copper concentrate into refined copper.

Annual benchmark copper TC/RCs fell sharply in 2025, with Chinese smelters reportedly agreeing to record-low terms. The downward trend has continued in 2026 amid a persistent shortage of copper concentrate supply, sector media have reported.

On 1 July this year, Chinese smelters and Chilean miner Antofagasta, whose annual negotiations are widely regarded as the global benchmark for copper TC/RC pricing, adopted a spot index-linked pricing mechanism as a contingency measure for the first time. The move reflected the difficulty of using the traditional fixed benchmark model in a market where spot TC/RCs have declined significantly.

The strained relationship between copper miners and Chinese smelters could complicate SAMR’s review of the Teck/Anglo American transaction, the first source said. Chinese industry participants may view the remedy talks as an opportunity to secure more favourable supply commitments and pricing terms, the source added.

This news service reported last month that SAMR had suspended the review clock around the mid-to-late stage of Phase III of its investigation of the deal, which, based on the regular review timeline, would likely have been sometime in July. There are no indications that the clock has resumed at this point.

The deal parties have submitted a behavioural remedy proposal to SAMR, the second source said. However, the possibility of structural remedies remains on the table, the same source added.

A third source familiar with the situation noted that the transaction will have an impact on Chinese smelters and said structural requirements could not be entirely ruled out.

Given the precedent set by the 2013 Xstrata/Glencore merger, which was cleared by China’s then merger control regulator, the Ministry of Commerce (MOFCOM), subject to structural remedies in the copper sector, it cannot be ruled out that SAMR will also require a divestment as a condition for approving the Teck/Anglo American transaction, the first source said.

The all-share merger, which was announced in September 2025, valued Teck at an implied CAD 32.6bn (USD 23.6bn), including debt at the time of the announcement.

SAMR does not comment on ongoing deals.

A spokesperson at Anglo American said the company is working with SAMR through its review but declined to comment further. Teck declined to comment.