July 23rd, 2024

Teck closes sale of coal business to Glencore in wake of federal approval

By The Canadian Press on July 11, 2024.

The Teck Resources logo is seen on a podium before the company's special meeting of shareholders, in Vancouver, B.C., on April 26, 2023. THE CANADIAN PRESS/Darryl Dyck

VANCOUVER – Teck Resources Ltd. says it has completed the sale of its remaining 77 per cent interest in its steelmaking coal business to Glencore plc.

The news comes as no surprise following the announcement last week by the federal government that it had approved the sale of the operation to the Swiss commodities giant.

Vancouver-based Teck received US$7.3 billion from Glencore for its coal business, which it sought to off-load in order to focus more on critical minerals and the energy transition.

Glencore had initially pursued a $25-billion hostile takeover attempt for all of Teck, a move that sparked economic nationalism concerns in Canada.

Industry Minister Fran├žois-Philippe Champagne said last week the green light for the sale of Teck’s coal business comes with “strict” conditions and represents a “much narrower” transaction than Glencore’s hostile takeover attempt last year.

Teck previously closed the sale of a minority stake in the steelmaking coal business to Japan’s Nippon Steel Corp. and South Korea’s Posco.

This report by The Canadian Press was first published July 11, 2024.

Companies in this story: (TSX:TECK.A; TSX:TECK.B)

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