(Zurich) The Swiss trading giant Glencore announced on Thursday that it was maintaining its merger offer with Canada’s Teck Resources after it gave up splitting its coal business.
At the same time, Glencore announced investments in activities of the Norwegian Norsk Hydro, in aluminum and bauxite.
The Swiss group said it took note of Teck Resources’ decision to withdraw its proposed split from its coal activities and confirmed that its “proposal still stands”.
Teck Resources, one of Canada’s largest mining companies, has already twice rejected an offer from Glencore and its managing director, Jonathan Price, reiterated on Wednesday that Glencore’s proposals remain “inadmissible”.
Glencore said it hoped the Canadian group would “engage constructively to fully explore” its proposal, “which has not been done so far”.
But “Glencore remains willing to make an offer directly to Teck shareholders”, warns the Swiss group if the board of directors continues not to engage in discussions.
On Wednesday, Teck Resources withdrew at the last minute its plan to separate its coal activities ahead of a general meeting in the midst of a showdown with Glencore.
In February, Teck Resources unveiled a plan to split its business into two, with metals on one side and coal on the other. Shareholders were due to vote on the plan on Wednesday.
But the Swiss group had meanwhile made him an offer of more than 22.5 billion dollars that Teck had refused in early April. Glencore had further improved its offer on April 11 by offering Teck Resources shareholders who wish to exit coal to receive 24% of MetalsCo, one of the two companies that would emerge from its offer, as well as a cash payment of a total amount of $8.2 billion.
Faced with a second refusal, he published an open letter to shareholders on April 19, assuring them that he was ready to improve his proposal further.
Teck Resources had the support for its project from its class A shareholders, who hold more voting rights. But Glass Lewis and ISS, shareholder advisory firms, had called for a vote against.
Shortly before the general meeting on Wednesday, Teck Resources withdrew its project, saying it wanted to opt for a simpler and more direct separation in the future.
In a separate press release, Glencore announced on Thursday that it had acquired a stake in two activities of the Norwegian group Norsk Hydro.
It intends to acquire 30% in the Alunorte aluminum refinery and 45% in Mineracão Rio do Norte, which operates a bauxite quarry in Brazil.