Glencore makes offer for Teck's steelmaking coal business

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Glencore on Monday offered to buy Teck Resources' steelmaking coal business as a standalone unit, after the Canadian miner twice rebuffed its $22.5 billon offer to combine the two companies.

steelmaking coal business as a standalone unit, after the Canadian miner twice rebuffed its $22.5 billon offer to combine the two companies.received several proposals for its coal business, as it reworks a plan to split it from its copper and zinc unit that failed to secure enough shareholder support in late April.

"If Teck is unwilling to consider a sale of Teck Metals at this juncture, an attractive 'middle ground' could be the sale of the coking coal assets to Glencore," Deutsche Bank analysts said in a note. "It would provide Teck with a cleaner exit from coal and allow Glencore to split its own business into CoalCo and MetalsCo."as a standalone unit was a "distant second" for the Swiss mining company, as it still pursues its merger plans.

Teck's steelmaking coal mines are among few left in the world, making them attractive to Glencore, as global efforts to phase out coal-fired power generation gather momentum.

 

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WSJ News Exclusive | Glencore Approaches Teck Over Its Coal BusinessSwiss mining and trading giant Glencore has approached Canadian miner Teck Resources over buying its coal assets
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