TECK - Canadian Regulators OK Glencore Teck Resources Deal: Future M&A Sanctions Need 'Exceptional Circumstances' | Benzinga
The Canadian government approved Glencore‘s (OTCPK: GLCNF) acquisition of Teck Resources (NYSE:TECK) metallurgical coal business Elk Valley Resources (EVR) for more than $6.93 billion.
The deal is expected to close on July 11, with Glencore acquiring a 77% stake in the British Columbia-based company. After that, the Swiss multinational miner could explore a spinoff of its coal business.
This approval follows Glencore's attempt last year to execute a hostile takeover of Teck Resources, Canada's largest diversified miner, which faced strong objections from the government and rejection from shareholders. Eventually, Glencore shifted focus and successfully negotiated to acquire Teck’s metallurgical coal business.
“The acquisition of EVR will further enhance the quality of our portfolio, broadening our ability to provide high-quality steelmaking coal, an important transition-enabling commodity, to customers around the world as well as contributing significant expected cashflows ...