Glencore-Teck takeover is certain

The Canadian government has approved Glencore’s acquisition of a 77 per cent stake in Elk Valley Resources (EVR), a steel and coal subsidiary of Teck Resources.

The final hurdle Glencore had to overcome before the deal could be completed on July 11 was obtaining approval from the Canadian government.

“We are pleased to have received final regulatory approval for this transaction and look forward to completing the acquisition and welcoming EVR to the Glencore group,” said Gary Nagle, CEO of Glencore.

“Glencore’s Canadian assets represent a significant portion of our global business, some of which date back more than 100 years. The investment in EVR will further support our position as one of the largest diversified miners and suppliers of key minerals in Canada.”

In early April 2023, Teck rejected Glencore’s $23 billion offer, leading the miner to add $8.2 billion in cash to its takeover offer.

Teck soon withdrew its proposal to split the company, which industry experts say could prompt Glencore to try to make another takeover bid. Glencore submitted an alternative takeover proposal in June 2023.

Five months later, in November, it was announced that Glencore would acquire a 77% stake in EVR for $6.93 billion.

Mr Nagle said that since then Glencore has been committed to ensuring that the transaction benefits all parties involved.

“We have made significant commitments to the Government of Canada that aim to ensure that the transaction delivers lasting benefits to Canada and British Columbia, including in relation to jobs, the environment and constructive and meaningful engagement with Indigenous nations in the Moose Valley,” said Nagle.

“The acquisition of EVR will further enhance the quality of our portfolio, increasing our ability to supply our customers around the world with high-quality steelmaking coal, an important transformational raw material, and contributing to significant expected cash flow for the Glencore Group.”

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