(Vancouver) Teck Resources announced that it has completed the sale of its remaining 77% interest in its steelmaking coal business to Glencore.
Last week, the federal government gave the Swiss commodities giant the green light for the takeover.
Vancouver-based Teck Resources received US$7.3 billion from Glencore for its coal business, which it sought to divest in order to focus more on critical minerals and the energy transition.
Glencore had initially launched a $25 billion hostile takeover bid to acquire all of Teck Resources, a move that sparked concern and economic nationalism in Canada.
PHOTO SPENCER COLBY, CANADIAN PRESS ARCHIVES
Federal Minister of Industry, François-Philippe Champagne
Industry Minister Francois-Philippe Champagne said last week that the green light for the sale of Teck’s coal business came with “strict” conditions and represented a “much more restricted” transaction than Glencore’s hostile takeover attempt last year.
After receiving the approval from Ottawa, Teck said at the time that the completion of the transaction would give the company “a path to increase copper production by 30% as early as 2028.”
“This transaction marks a new era for Teck as a company focused entirely on providing critical metals to global development and the energy transition,” company President and CEO Jonathan Price said in a statement last week.
Teck had previously completed the sale of a minority stake in the steelmaking coal business to Japan’s Nippon Steel and South Korea’s Posco.
The company has four near-term copper projects that will cost about $4.7 billion to complete. It is also working to increase production at its $8.7 billion Quebrada Blanca Phase 2 project in Chile.
As part of the deal, Glencore has committed to establishing and maintaining a Vancouver headquarters for Elk Valley Resources, the coal business, for at least 10 years, as well as regional offices in Calgary and Sparwood, B.C., Champagne said last week.
A majority of Elk Valley Resources’ directors and two-thirds of its officers or senior managers must be Canadian for the same term.
The first news about the sale of Teck Resources’ coal business dates back to 2021.