India-based JSW Steel is planning to acquire a stake of up to 20% in the steelmaking coal business of Canada’s Teck Resources, Bloomberg reported.

One of India’s largest steel producers, JSW Steel is in talks with banks over funding for the proposed deal, which is valued at around $2bn (Rs164.14bn).

With discussions currently in the preliminary phase, details such as timing and cost are not certain at this point, the news agency stated, citing people familiar with the development.

In February 2023, Teck announced plans to split its business into two independent, publicly listed companies, Teck Metals and Elk Valley Resources (EVR).

Teck Metals would be a copper-focused entity while its metallurgical coal business would be spun off under EVR.

However, the separation proposal was withdrawn in April, with the company now considering a simpler and more direct separation approach.

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In the same month, Glencore made a $23bn unsolicited takeover bid for Teck.

The offer was dismissed by Teck on grounds of being opportunistic, posing executive risks, and exposing its shareholders to significant risks of thermal coal and oil trading.

Glencore also added an $8.2bn cash element to its proposal to buy out Teck stakeholders from their coal exposure.

However, Teck shareholders have sought an increased bid from Glencore.

Last month, Glencore made a proposal to acquire Teck’s coal and steelmaking business. The offer includes the acquisition of the company’s metal mines in North America.

Glencore added that it is still willing to pursue a full takeover of Teck.