Author of the article:
Published Jul 05, 2024 • 1 minute read
Ottawa says it has approved Teck Resources Ltd.’s sale of a majority stake in its steelmaking coal business to Swiss commodities giant Glencore. The Teck Resources logo is seen on a podium before the company’s special meeting of shareholders, in Vancouver, B.C., Wednesday, April 26, 2023. Photo by DARRYL DYCK /THE CANADIAN PRESS
VANCOUVER — Ottawa says it has approved Teck Resources Ltd.’s sale of a majority stake in its steelmaking coal business to Swiss commodities giant Glencore.
In a statement posted Thursday, Industry Minister Francois-Philippe Champagne says the green light comes with “strict” conditions and represents a “much narrower” transaction than Glencore’s hostile takeover attempt of Teck last year.
Advertisement 2
This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.
Sign In or Create an Account
or
Article content
Teck says the latest development means the sale of its remaining 77 per cent interest in the steelmaking coal business, Elk Valley Resources, has now received all necessary regulatory approvals and is expected to close next Thursday. The Vancouver-based miner says it expects to receive $9.5 billion from the sale, excluding closing adjustments.
The company’s president and CEO Jonathan Price says the move marks a “new era” for Teck, allowing it to focus entirely on producing metals that are essential to global development and the energy transition, which includes increasing copper production by 30 per cent as early as 2028.
As part of the transaction, Champagne says Glencore has committed to establishing and maintaining a Vancouver head office for Elk Valley Resources for at least 10 years, along with regional offices in Calgary and Sparwood, B.C.
The conditions also include ensuring the majority of Elk Valley Resources’ directors, and two-thirds of its executives or senior managers, are Canadian for the same duration.
This report by The Canadian Press was first published July 5, 2024.
Companies in this story: (TSX:TECK.B)
Article content
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Financial Post – https://financialpost.com/pmn/business-pmn/ottawa-approves-sale-of-tecks-steelmaking-coal-business-to-glencore
