Teck edges closer to sell coal asset to Glencore for $6.9 Bln

sxcoal.com General, International 2023-11-14 15:04:35

Canada's Teck Resources Ltd. plans to sell a 77% stake in its steelmaking coal business to global mining giant Glencore PLC for $6.9 billion, according to a Reuters report.

Citing sources, the report said Japan's Nippon Steel Corp will acquire 20% of the assets by paying $1.7 billion and swap its interest in one Teck coal operation. South Korea's POSCO will swap its interests in two of Teck's coal operations for a 3% stake, worth around $267 million.

The planned deal values Teck's coal assets at $8.9 billion and could be announced as early as November 14, according to the report.

Vancouver-based Teck, one of the world's largest exporters of coking coal, has been exploring options to sell all or part of its coal business to focus more on copper and Zinc. In July, it said it had received offers from various parties for the asset.

The deal would make Glencore the leading producer of steelmaking coal at a time of strong demand from steel mills and exceptionally high prices for the ingredient. Coking coal prices in Asia hit record highs last year on supply concerns.

Teck previously rebuffed a $22.5 billion takeover proposal from Glencore for the entire company made in April.

(Writing by Alex Guo Editing by Emma Yang)
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