15 November 2023

Glencore to buy majority stake in Teck's coal division

Glencore has entered into an agreement to acquire a majority stake in Teck Resources' coal division for US$9 billion.

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The deal means Glencore will acquire a 77% stake in Teck's coal division, which supplies coal primarily to the steel industry. The remaining stake will be split between Japan's Nippon Steel and South Korea's Posco. This transaction follows a protracted public dispute between the two entities. Teck initially rejected Glencore's USD 23 billion offer to buy the entire company, with the ultimate goal of creating two separate companies focused on metals and coal mining.

Glencore's strategy involves the merger of Teck's coal division with its existing coal business and the subsequent spin-off of the merged unit as a new entity to be listed on the New York Stock Exchange. As a global natural resources conglomerate, Glencore operates as one of the world's largest producers and marketers of more than 60 commodities. Its extensive operations include approximately 140,000 employees and contractors, operate in more than 35 countries and cover both established and emerging natural resource regions.

Completion of this transaction is subject to approval by the Canadian government, which has shown an increasing interest in protecting the country's natural resources.