Private equity activity in South Africa more than tripled in the first nine months of 2025, lifted largely by the proposed R1.05 trillion ($60 billion) Anglo American–Teck Resources merger, DealMakers Africa said in a report released last week.
The corporate finance tracker shows that Africa’s most industrialised economy recorded 273 deals valued at R1.62 trillion ($89.5 billion) between January and September — the highest in at least 13 years and a 239.6% surge from the same period in 2024. It also marks a 370.9% increase compared with the corresponding nine-month period in 2023.
Of the 273 transactions, local investors executed 232 deals valued at R322.9 billion ($17.8 billion). The 41 foreign-led transactions accounted for R1.29 trillion ($71.3 billion), underscoring the outsized impact of this year’s planned mega-merger.
“Private equity continues to consolidate its presence in the dealmaking landscape,” said Marylou Greig, Editor at DealMakers Africa. “Over the past few years, the industry has had to adapt to higher capital costs, more challenging exits, and the growing influence of AI.”
She added that these shifts are driving a strategic pivot toward private credit, as firms widen their offerings to provide more flexible financing in a high-interest environment.
On September 9, Anglo American Plc and Canada’s Teck Resources Limited announced a proposed merger of equals that would form the Anglo Teck Group. Under the plan of arrangement, Anglo will issue 1.3301 ordinary shares for each Teck A common and Teck B subordinate voting share. Anglo will also pay a special dividend of $4.5 billion, or about $4.19 per share.
The tie-up—expected to close within 12 to 18 months—will leave Anglo shareholders with a 62.4% stake in the merged entity, while Teck shareholders will hold 37.6%.
Rating agency S&P Global said the all-share deal would create a top-tier copper producer worth more than $53 billion, putting it in the same league as Freeport-McMoRan Inc. and Southern Copper Corp.
If approved across multiple jurisdictions, the new company will be headquartered in Vancouver and listed on the London, Toronto, Johannesburg, and New York stock exchanges.
The agency noted that the Anglo–Teck transaction is 2025’s largest metals-focused deal, far surpassing Nippon Steel Corp.’s $14.2 billion takeover of US Steel Corp., which closed in June. It is also the biggest since Glencore Plc’s $29.9 billion acquisition of Xstrata in 2013.
“The deal is particularly significant given the shifting copper market: constrained global mined supply, rapid smelter expansion—especially in China—and a widening concentrate deficit expected in the years ahead.”
Excluding five failed transactions, South Africa recorded 268 completed deals in January–September 2025. Of these, 40 were announced by companies with secondary inward listings on the country’s exchanges. Deals in the R50 million to R200 million ($2.76 million–$11.1 million) range accounted for the largest share.
Real estate remained the most active sector, followed by resources and technology. South African-domiciled, exchange-listed companies participated in 44 cross-border deals, with Africa (13 transactions) and Europe/the UK (8) the most prominent destinations—again led by real estate and resources.
Note: All figures were originally reported in South African Rand and converted using the official average exchange rate of R18.10/$1 for the first nine months of 2025.
