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(Kitco News) - Teck Resources Limited (TSX: TECK.B) announced today that its board unanimously rejected an unsolicited proposal from Glencore for $22.5 billion.
Teck was up 13% to $56.11 share.
Teck said that the Glencore deal would create two businesses, which would expose Teck shareholders to thermal coal and oil trading. Teck has been trying to separate from these two lines of businesses.
"The spun-out business envisioned by Glencore would be a majority thermal coal business of an unprecedented scale. Thermal coal mines are contrary to the global decarbonization agenda. The Glencore proposal would force Teck shareholders to hold massive thermal coal exposure, which would be value destructive, drive away current and future investors who cannot hold thermal coal assets, and result in Teck’s world-class steelmaking coal business trading at a discoun," wrote Teck.
Teck also said the bid was opportunistically timed.
"The unsolicited proposal is an opportunistically timed attempt to transfer value to Glencore shareholders at the expense of Teck shareholders. It comes as Teck is ramping up its flagship QB2 copper project (which announced first copper March 31, 2023) and poised to implement its separation plan to create two world-class, pure-play companies and realize the full potential of each business for shareholders," wrote Teck.
