China's antitrust regulator has requested Anglo American to commit to supplying the country with a steady flow of copper concentrate as a condition for approving the proposed $54 billion merger with Canada's Teck Resources, according to sources familiar with the development reported by Reuters on October 2, 2026. The State Administration for Market Regulation has asked for assurances on copper concentrate supply, including volumes sold through traders, as China seeks to address a significant feedstock shortage affecting its copper smelting industry. China's copper smelting sector refines approximately 60% of the world's copper cathodes but is currently facing 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. This supply pressure is compounded by falling prices for byproduct sulphuric acid, which squeeze smelter profitability. As a major consumer of both companies' copper, China maintains effective veto power over the merger and has historically leveraged its antitrust authority over major deals to extract strict behavioral remedies protecting its domestic industrial supply.
The regulator has received feedback from Chinese smelters and is now negotiating remedies based on their concerns. An Anglo American spokesperson stated that the company is making good progress towards completion and working constructively with SAMR through its structured review process, though the spokesperson declined to provide further details. 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.
Industry analysts warn that cutting off the combined Anglo Teck's massive unrefined volumes from the open market could accelerate the closure of Western processing facilities already under pressure from rising costs. Operating under state-mandated destination clauses could also accelerate a shift away from traditional annual benchmark pricing toward index-linked spot pricing. Teck Resources declined to comment on regulatory processes, while the State Administration for Market Regulation did not immediately respond to a request for comment.
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 5% of global copper supply, which falls below competition thresholds exceeding 10% to 15%.
The remedies sought by China do not include asset sales at this stage, according to sources cited in the report. This situation reflects broader concerns about market access, as illustrated by Anglo American's sale of nickel assets to China's MMG, which subsequently faced antitrust concerns from the European Commission over potential diversion of ferronickel supply away from European markets.
Source: mining.com