Ottawa set to approve Glencore takeover of Teck’s coal business with stringent conditions

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Three sources close to the transaction said that Ottawa was planning to soon approve the Glencore transaction as soon as Thursday evening

The logo for Canadian mining company Teck Resources Limited is displayed above their booth at the Prospectors and Developers Association of Canada annual conference in Toronto, Ontario, Canada March 7, 2023.The federal government is poised to imminently approve Glencore PLC’s US$6.9-billion acquisition of the metallurgical coal business of Teck Resources Ltd with several stringent and legally binding conditions, the Globe and Mail has learned.

Teck last November agreed to sell 77 per cent of its coal business to Glencore, after entertaining offers from other mining companies. The remaining 23 per cent of the coal business was sold to Japan’s Nippon Steel and South Korea’s POSCO. Those transactions were promptly approved by Innovation, Science and Economic Development Canada .

Switzerland-based Glencore originally proposed buying all of Teck early last year, including the company’s copper and zinc mines, in a US$23.1-billion transaction. But Teck repeatedly rejected Glencore’s advances.

 

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