In response to media reports about the acquisition of the steelmaking coal business of Teck Resources Limited, Glencore has confirmed that it has submitted a proposal to the Teck Board to acquire Teck’s steelmaking coal business for cash.
While Glencore remains willing to pursue its M&A proposal, Glencore has made this alternative acquisition proposal because it should enable shareholders to benefit from a value-added demerger of the combined coal and carbon steel materials businesses. We also note that shareholder support for a transaction between Glencore and Teck remains strong.
If a transaction were to complete, Glencore would proceed with the demerger of coal and carbon steel materials once Glencore had sufficiently reduced its activities, which is expected to occur approximately 12 to 24 months after the closing of the transaction. Glencore will manage its balance sheet following the demerger.
Glencore is fully committed to ensuring that the proposed acquisition benefits Canada and is willing to work with Teck to identify a comprehensive set of commitments for the benefit of all affected stakeholders that would, among other things, maintain and, where possible, strengthen Trek’s existing presence and capital investments in Canada, as well as its community, social, labour and environmental programs.
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