Teck rejects unsolicited Glencore bid

Canadian miner Teck Resources has rejected an unsolicited $22.5 billion offer from Glencore, citing reluctance to expose its shareholders a large thermal coal business, an unwanted oil trading business and significant jurisdictional risk, reported Reuters.

Glencore’s proposal was to merge with Teck and to simultaneously demerge their combined metals and coal businesses to create MetalsCo and CoalCo. The remaining company would be rebranded as GlenTeck.

Teck said more value could be created through a restructuring proposed earlier this year in which the miner would spin off its steelmaking coal unit to focus on copper and other industrial metals. A vote on that proposal is scheduled for April 26.

After the separation, Teck’s metal-focused unit plans to be known as Teck Metals Corp, while the divested unit would be listed in Toronto as Elk Valley Resources.

Sources: Reuters and Glencore

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