A new consortium is proposing to buy Teck Resources metallurgical operations. This would stop Glencore from acquiring the entire company for $23 billion.
The Globe and Mail reported that the mining veteran Pierre Lassonde is leading the effort to prevent Glencore from buying Canada’s largest and most diversified miner. In April, Canada’s largest and most diversified miner rejected a $23 billion unsolicited offer from the Swiss commodities trader and miner.
Glencore made it clear that it would not budge and stated it was still interested even after Teck’s restructuring proposal had been removed from the table.
Lassonde said to the newspaper that “Teck is moving forward.” For them, they will consult their bankers as well as other groups. They want something done within eight to twelve weeks. We are waiting to hear how they would like to proceed.
Teck’s Nasdaq listed shares were up 3.5% at $45.81 yesterday afternoon, late in New York.
For his proposal to be successful, the Canadian businessman, philanthropist and 76-year-old will need support from Teck’s current coal joint venture steelmaking partner, Japan’s Nippon Steel, and South Korea’s Posco.
Glencore’s Marketing Division made a record-breaking $6.4 billion in adjusted earnings last year. This was up by 73 percent year-on year. Energy products accounted for $5.2 billion. Glencore’s mining operations and thermal coal production accounted for the largest share of its profits in 2013.