Jefferies analysts on Tuesday weighed in on the upcoming merger between Teck Resources Ltd (USA) (TSX:TCK) and Anglo American PLC (LSE:AAL), suggesting that a new suitor may emerge after Teck disclosed that it had on-and-off discussions with a “Party X” from May 2023 to May 2025.
In a note to clients, the analysts pointed to Freeport-McMoRan or Rio Tinto Group as being the likely Party X but wrote that competing offers would likely need to be made before Thanksgiving.
They still believe the most likely scenario is that the Teck-Anglo American merger will close at the agreed upon terms, with any potential bidders needing to present a superior offer.
The Anglo and Teck shareholder votes are scheduled for December 9, 2025.
Jefferies analysts expect shares of Teck and Anglo to outperform in the short term as the planned merger in its current form should lead to a higher combined equity valuation.
NYSE-listed shares of Teck Resources rose nearly 2% to $43.08 in midday trading on Tuesday.