Sunday, August 24, 2025

Latest

After Two Rejected Offers, Glencore Now Wants Teck Resources’ Steelmaking Coal Unit

Glencore has made an offer to acquire Teck Resources (TSX: TECK.B) steelmaking coal business as a separate entity, after the latter had rejected the London-listed firm’s $22.5 billion bid to merge the two companies.

Just a few days ago, Teck Resources announced that it had received multiple proposals for its coal business. The company had been planning to split it from its copper and zinc unit, but this strategy failed to garner enough support from shareholders in April.

Now, Teck has confirmed that it is in discussions with Glencore regarding its coal proposal as part of the board’s duties “to consider and evaluate all actionable, value-accretive proposals received relating to Teck’s steelmaking coal business”

“As part of this ongoing review, Teck confirms it is engaging with Glencore around their proposal regarding the steelmaking coal business. The proposal is preliminary in detail, conditional and non-binding,” the company said.

Glencore, a major player in mining and trading thermal coal for electricity production, as well as coking coal for steel manufacturing, has suggested demerging the coal units of both companies.

In a recent note, Deutsche Bank analysts proposed that if Teck is unwilling to sell Teck Metals outright, a potential “middle ground” could be the sale of the coking coal assets to Glencore. This arrangement would offer Teck a cleaner exit from coal and allow Glencore to split its business into two separate entities: CoalCo and MetalsCo.

While Glencore’s CEO Gary Nagle previously indicated that acquiring Teck’s coal business as a standalone unit was a secondary option for the company, as it continues to pursue its merger plans, the dwindling number of steelmaking coal mines worldwide has piqued Glencore’s interest. This scarcity makes Teck’s mines particularly attractive, especially considering the growing global momentum to phase out coal-fired power generation.

Aside from Glencore, other parties have shown interest in Teck’s coal business, including Canadian mining entrepreneur Pierre Lassonde and Japanese steel maker Nippon Steel Corporation.

As part of its original proposal, Glencore offered Teck shareholders who may not want exposure to thermal coal a staggering cash amount of up to $8.2 billion. Details of the latest offer however have not been made public.


Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Equinox Gold Q2 Earnings: Back On Track

G Mining Q2 Earnings: Costing Gone Wild

Aya Gold Q2 Earnings: Production Slips Amid Ramp Up

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Tesla Discussed Taking Equity Stake in Swiss Mining Company Glencore

Tesla (NASDAQ: TSLA) allegedly held talks with Glencore about a potential equity stake in the...

Monday, October 31, 2022, 11:30:23 AM

Teck Resources Falls Short Of Q1 Steelmaking Coal Guidance

Teck Resources (TSX: TECK.B) appears to be handling its operations in British Columbia well despite...

Monday, April 11, 2022, 08:36:21 AM

BMO: Teck Resources’ Shift To Focus On Copper Will Help Attract ESG Funds

Last week, BMO Capital Markets hosted Teck Resources’ (TSX: TECK.A, TECK.B) CEO Jonathan Price, CFO...

Friday, December 2, 2022, 03:10:00 PM

Teck Mining Pivots to Asian Markets as Trump Tariffs Hit Canadian Exports

Canadian mining company Teck (NYSE: TECK) is preparing to shift its zinc exports from the...

Thursday, March 6, 2025, 12:55:00 PM

Generation Mining Enters Offtake Term Sheets For 100% Of Expected Copper Concentrate Production At Marathon

The demand for copper concentrate set to be produced by Generation Mining (TSX: GENM) at...

Monday, March 27, 2023, 09:03:50 AM