Teck Resources stock was rising ahead the open Monday after mining giant
Glencore
made an offer to buy the Canadian company’s steelmaking coal business.
Teck
(ticker: TECK) has already rejected two full takeover bids from
Glencore,
and said last week that it has received several offers for its coal unit. Teck stock pointed 1% higher at $42.97 in premarket trading, while Glencore was 0.3% up in London trading.
Glencore said it was still willing to pursue its original $23 billion proposal for a full merger between the two companies, announced in April, but it was putting forward the offer for Teck’s coal assets as an alternative. The April proposal included a plan to simultaneously demerge Glencore and Teck’s combined coal assets, creating a company called CoalCo.
Glencore’s alternative bid would see CoalCo demerged within approximately 12-24 months should an accepted deal close, the Anglo-Swiss commodities giant said in a filing Monday.
Teck said it was engaging with Glencore over what it described as one of a number of proposals related to its steelmaking coal business, in a statement Monday. The company is continuing to “consider and evaluate all actionable, value-accretive proposals” relating to its coal business, it added.
Coal has proved a contentious issue for investors, particularly for those looking at ESG (environmental, social, governance) factors. While its rivals are in the process of divesting from coal, Glencore has opted not to, instead it plans to wind down its coal business and achieve net-zero emissions by 2050.
Write to Callum Keown at [email protected]
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