Glencore has escalated its takeover battle for Canadian miner Teck Resources by adding a cash-for-coal element to its offer.
According to the revised proposal, the Swiss commodities major plans to buy out Teck shareholders’ stake in the coal-focused spin-off by paying them up to $8.2bn in cash.
Go deeper with GlobalData
In addition, Glencore will grant Teck shareholders a 24% stake in the combined metals company, which will be created following the merger.
Glencore’s proposal contemplates an acquisition of Teck and the subsequent demerger of combined thermal and steelmaking coal businesses.
The amended offer allows coal spin-off investors the option of choosing cash instead of shares or a combination of both.
See Also:
Notably, the estimated value of the bid is still close to $23bn, which is the same as the initial proposal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe news comes after the Canadian miner stepped up efforts to spurn Glencore’s unsolicited offer, calling it structurally flawed and a “non-starter”.
Responding to the latest bid, Teck said: “Glencore’s revised proposal appears to be largely unchanged, with the exception of a cash consideration alternative in lieu of shares in the proposed combined coal entity.
“The revised proposal does not provide an increase in the overall value to be received by Teck shareholders or appear to address material risks previously raised by Teck.”
Teck previously turned down Glencore’s offer, stating that it would increase its shareholders’ exposure to the coal and oil business.
