Glencore has secured a 77% stake in Elk Valley Resource (EVR), which holds the coal assets of Teck Resources. This acquisition comes after a hard-fought battle with the Canadian group, culminating in a financial agreement worth $6.93 billion.
Reactions in Canada
The announcement of Glencore’s interest in Teck Resources caused a stir in Canadian political circles. However, Glencore has worked hard to convince us that this transaction would be in the country’s best interests.
Impact on Teck Resources
This acquisition will enable Teck Resources to focus more on critical minerals, particularly copper, as explained by Jonathan Price, CEO of the Canadian company. Teck Resources’ coal activities are now valued at $9 billion.
Glencore’s position on coal
It should be noted that Teck Resources had initially planned to separate its coal operations from its metallurgical activities. However, Glencore had presented a complex and controversial offer, first suggesting a collaboration in coal and metals, then a subsequent demerger. Although this offer was rejected by Teck Resources, it aroused the interest of certain shareholders, putting an end to the demerger project.
Despite the criticism, Glencore continues to defend its coal activities, claiming that it intends to manage its mines responsibly until they are exhausted. This position earned him criticism from certain shareholders. Overall, this acquisition marks a turning point in the commodities sector and opens the door to new opportunities for Glencore and Teck Resources.
With this agreement, Glencore has acquired a major stake in the coal activities of Teck Resources, strengthening its position in the commodities sector. This acquisition is expected to have a significant impact on both companies, as well as heightening interest in their future development.
