Glencore-Teck Merger Proposal Faces Skepticism | OilPrice.com

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Glencore proposed a merger with Teck Resources to create a world-class metals company, but Teck isn’t interested.

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Teck produces zinc and copper in concentrate as well as coking coal from assets in Canada. This also includes Chile and the United States. The proposed transaction submitted to Teck’s board on March 26, would see Glencore hold a 76% stake in the merger while Teck would hold 24%. Switzerland-based Glencore also suggested the creation of two standalone companies to focus on metals and coal, respectively.

Thermal coal supply was also tight due to other producers shutting down in previous years. The source noted that this may have pushed up prices, but that this type of coal will eventually wind down.

 

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