VANCOUVER – Teck Resources Ltd. has received an undetermined number of “indications of interest” to spin out its coal businesses as it considers alternatives to Glencore’s unsolicited acquisition approach.
“There is widespread recognition in the market today of the value of our high-margin, long-life steelmaking coal assets, which has, in turn, generated considerable interest from various parties,” said CEO Jonathan Price on Tuesday.
Vancouver-based Glencore’s alternate strategy in early April derailed Teck’s previous plan. The offer, which was sweetened to include additional cash, gave stockholders a stake in a combined metals firm and a choice of cash or shares in a company that would control their integrated coal holdings.
On April 26, Teck pulled off a shareholder vote on its plan after realizing it did not have enough support and announced it would pursue a simpler split.
The company thinks dividing its coal and base metal operations would boost their worth.
Teck said Tuesday it will continue to assess all value-adding suggestions for its steelmaking coal business to see if they benefit shareholders and other stakeholders.
“Teck’s Board will appropriately consider and evaluate any proposal that can unlock the tremendous potential of Teck’s premium businesses,” said board chair Sheila Murray.
“We are also determined to find a way to continue responsible operations in the Elk Valley and support a sustainable future for employees, local communities, and Indigenous Peoples.”
Teck has opposed Glencore’s proposal to combine Teck’s higher-quality steelmaking coal with Glencore’s thermal coal assets used in power generation and add oil trading to the metals side of the business as not aligned with its green-economy production.
To fulfill worldwide demand for copper and zinc, which are needed to make electric cars and are vital to the energy revolution, the firm wants to increase output.
Teck’s Elk Valley activities have contaminated area streams that run south into Montana with selenium, drawing environmental concern from Indigenous organizations.
The Keevil family and Sumitomo Metal Mining Co. Ltd. control the corporation through their class A shares.
Teck chairman emeritus Norman Keevil has stated Glencore’s bid is the wrong one at the wrong time, but he is open to discussing alternative mergers once the firm completes its split.
Conservative Leader Pierre Poilievre and B.C. Premier David Eby have also opposed Glencore’s deal.
Industry Minister Francois-Philippe Champagne stated, “We like Teck as a Canadian company,” but did not oppose the acquisition.
Glencore’s takeover of the Canadian company would be subject to a net-benefit review and a national-security review by the federal government, and some observers have noted that the government has committed to a national critical minerals strategy as part of its climate plan.