In April, Swiss commodities company Glencore made its first unsolicited takeover bid for the entirety of Teck’s operations, but the latter rejected the offer, calling it “unsolicited and opportunistic”.
Last month, Glencore made another offer to purchase Teck’s coal business. The offer included the acquisition of the latter’s metal mines in North America.
Teck Resources is relying on its limited coking coal mines in the world to secure a better valuation. The company is also conducting a thorough evaluation that was spurred by Glencore’s initial offer to take over the entire business.
Price was quoted by Bloomberg News as saying during the company’s earnings call: “We are working on this very actively right now and we are engaged with multiple counterparties.”
Price did not disclose the names of the potential buyers.
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Price was quoted by Reuters as saying to analysts: “This business is positioned to capitalise on the global supply gap from existing mine depletion and a lack of new projects coming into production.”
In July 2022, Bloomberg reported that India-based JSW Steel was looking to acquire up to 20% of Teck Resources’ steelmaking coal business.