(Finance) – Glencorean Anglo-Swiss giant active in the mining sector, has entered into a binding agreement with Teck Resourcesa Canadian company active in the same sector, for theacquisition of a 77% stake in the whole coal production activities Teck’s Elk Valley Resources (EVR) for $6.93 billion in cash.
The transaction is subject to mandatory regulatory approvals, namely the Investment Canada Act (ICA) and competition approvals. The transaction is expected to close in third quarter of 2024.
Teck also agreed to sell 20% of the business to the Japanese company Nippon Steel Corporation, which already holds a 2.5% stake in the business. The Korean POSCO it will instead swap a stake in two of Teck’s coal businesses for 3% in the EVR steelmaking coal business.
“We are pleased to have reached an agreement to acquire Teck’s coal operations in the Elk Valley,” he commented Gary Nagle, CEO of Glencore – These world-class assets and the experienced people who operate them are expected to significantly complement our existing thermal coal and steel production located in Australia, Colombia and South Africa“.
“This transaction also strengthens our long-standing commitment to Canadasupporting our position as one of the largest miners and diversified suppliers of critical minerals in Canada, in one of the world’s leading mining jurisdictions,” he added.