Glencore open to improving Teck offer, but shareholders must reject plan to split

By The Canadian Press on April 19, 2023.

VANCOUVER – Glencore says it is willing to consider making improvements to its offer to acquire Teck Resources Ltd., but the Swiss company says shareholders of the Canadian miner must first reject a plan to separate its base metals and steelmaking coal businesses.

In an open letter to Teck shareholders, Glencore CEO Gary Nagle says he believes that any such improvements are best considered following engagement by the Teck board of directors.

Teck’s board has rejected Glencore’s unsolicited takeover offer that would see shareholders receive a stake in a combined metals company as well as a choice of cash or shares in a company that would hold their merged coal assets. The proposal represented a 20 per cent premium when it was first made.

Instead, Teck is pursuing a plan it announced in February to split up its metal and steelmaking coal businesses into two companies, Teck Metals and Elk Valley Resources.

The proposal will be voted on by shareholders on April 26.

However, Glencore says it cannot pursue its proposal if Teck’s plan to separate its businesses goes ahead.