Teck Resources snubs takeover offer from commodity giant Glencore
Canada’s Teck Resources revealed on Monday that its board has unanimously rejected an unsolicited acquisition proposal from Swiss commodity firm Glencore.
The offer would see Glencore acquiring Teck and subsequently creating two businesses which would expose Teck shareholders to thermal coal and oil trading, the Canadian copper miner said in a statement.
The proposed separation into Teck Metals and Elk Valley Resources is in the best interest of Teck and all its stakeholders, it added.
“The board is not contemplating a sale of the company at this time,” Teck chair Sheila Murray said.
Glencore’s bid reflects the latest shift in the mining industry, with commodity giants looking to make deals again and consolidate market shares of valuable minerals and metals.
Earlier this year, Teck announced plans to split its own business between base metals and coal.
This has powered speculation it could become be a target for bigger miners looking to boost cooper production.
It also exposes a a key issue overhanging large producers of coal like Teck and Glencore.
While the industry is seeking to focus more on metals that will benefit from the clean-energy transition, coal remains a massive profit driver.
Reuters – Ankit Kumar and Morning Wire reporters