Glencore acquires majority of Teck's coal business
14 November 2023 12:57
The Zug-based commodities group Glencore is acquiring a 77 per cent stake in Elk Valley Resources (EVR), according to a statement. EVR is a subsidiary of Teck Resources Limited (Teck), which is based in Vancouver in the province of British Columbia on Canada's west coast. The company comprises Teck's steelmaking coal business.
Glencore is reportedly paying 6.93 billion dollars for the 77 per cent stake. A minority of EVR will be taken over by Japan’s Nippon Steel Corporation (NSC), which will hold a 20 per cent stake once the transaction is completed. The remaining three per cent will belong to the South Korean steel producer Posco. The transaction is still subject to approvals by the relevant authorities. Glencore expects the acquisition to close in the third quarter of 2024.
In the statement, Glencore also confirms its intention to merge EVR's steelmaking coal business with its own coal business before selling on the entire business. A possible sale date, according to Glencore, is two years after the transaction completes. ce/ssp