Teck Resources agrees to sell steelmaking coal business
By The Canadian Press on November 14, 2023.
VANCOUVER – Teck Resources Ltd. has agreed to sell its steelmaking coal business in a series of deals that value the operations at US$9 billion. The company says Swiss commodities giant Glencore has agreed to pay US$6.9 billion for a 77 per cent stake in the coal business, known as Elk Valley Resources. Meanwhile, Japanese company Nippon Steel Corp. will acquire a 20 per cent stake in exchange for its interest in one of Teck’s coal operations and US$1.7 billion in cash, including US$1.3 billion at closing and US$400 million to be paid out of cash flow from the coal business. South Korean steelmaker POSCO will swap its interest in a pair of Teck’s coal operations for a three per cent stake in the overall steelmaking coal operations. Teck has been weighing the future of its steelmaking coal business since it became apparent its plan to spin off the operations into a separate company did not have the required shareholder support. The company says the sale is subject to several conditions including approvals under the Investment Canada Act and competition approvals in several jurisdictions. This report by The Canadian Press was first published Nov. 14, 2023. Companies in this story: (TSX:TECK.B) 9-8
