(Reuters) - London-listed miner Anglo American(AAL.L) and Canada's Teck Resources(TECKb.TO) are to merge, the two companies said on Tuesday, in what would be the biggest mining sector M&A deal in over a decade.

Under the proposed deal, which will require regulatory approval, Anglo American shareholders would own 62.4% of the newly combined company, Anglo Teck, while shareholders in Teck will hold 37.6%.

Anglo Teck will be headquartered in Canada but have a primary listing in London, said the two companies, whose combined market capitalisation exceeds $53 billion.

The deal marks a big bet by Anglo on copper, demand for which is forecast to rise sharply, driven by the electric vehicle boom and emerging uses such as AI-powered data centres.

Both Anglo and Teck have been at the centre of takeover interest in recent years, with Glencore pursuing Teck and BHP targeting Anglo for their extensive copper portfolios.

Anglo American's London shares were up more than 7% in early trading after the announcement, on track for their biggest daily gain in over a year, while U.S.-listed Teck shares were up 10.4% pre-market.

Anglo's chief executive, Duncan Wanblad, will remain CEO of the new company, while Teck's Jonathan Price will be deputy CEO.

Wanblad, speaking to journalists from Vancouver, called the deal a "true merger of equals", adding that Anglo Teck's board would be drawn equally from the two companies' existing directors.

"We will have a stronger, more resilient financial platform with scale advantages, including greater flexibility to reallocate capital dynamically to the highest returning opportunities," he said.

The deal has a zero-premium, all-share structure, but Anglo's shareholders will receive a $4.5 billion special dividend.

"As a merger, we absolutely get to draw on the best of both, and we don't really need to pay away anything on either side in terms of premium to get the full benefit," Wanblad said.

COST SAVINGS AND EFFICIENCY GAINS

The merger is expected to generate annual cost savings and efficiency gains of $800 million by the fourth year after completion, Anglo said.

The two companies operate adjacent copper mines in Chile - Quebrada Blanca and Collahuasi - which are expected to deliver further operational benefits.

Teck CEO Price said securing the regulatory approvals for the deal could take between 12 and 18 months. He added that Canada's Keevil family, which owns a majority of Teck's A-class shares, backed the deal.

"We have irrevocable support from Dr. Keevil and the other A-share voters," he said.