A consortium led by mining veteran Pierre Lassonde is proposing buying Teck’s coal business in bid to thwart Glencore

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A consortium led by mining veteran Pierre Lassonde is proposing acquiring Teck’s coal business in bid to thwart Glencore

coal operations, a deal that could stop Glencore PLC in its tracks, and offer a Made-in-Canada solution that may be palatable to Ottawa.the world’s biggest mining streaming and royalty firm. He is a well-known Canadian patriot, and is one of the country’s chief critics against the incursion of foreign mining companies into Canada over the past two decades.

“Teck wants to move forward, we’ve been told very definitively” said Mr. Lassonde. “For them, it’s a question of consulting their bankers and consulting other groups. We’re told that they want to get something done between eight to 12 weeks.”Vancouver-based Teck in a stock and cash deal worth about US$22.5-billion. The giant Swiss mining and commodities trading house was rebuffed by Teck’s board on two occasions.

Mr. Lassonde will likely need the backing of Teck’s existing coal joint venture steel making partners, Japan’s Nippon Steel, and South Korea’s POSCO before his proposal can succeed. He indicated optimism that both will back his proposal. Both POSCO and Nippon have already said they weren’t interested in a Glencore acquisition of Teck’s metallurgical coal assets, owing to ESG concerns over Glencore’s thermal coal business.

 

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