Glencore beats JSW Steel to buy 77% of Canadian co Teck's coal business for $6.9 billion

Glencore to buy 77% of Teck's coal unit

Mining giant Glencore Plc on November 14 said it has entered an agreement with Teck Resources Limited for the acquisition of a 77 percent interest in the Canadian company's steelmaking coal unit for $6.93 billion in cash, leaving behind India's JSW Steel, which also was eying to acquire the unit.

Concurrently, Nippon Steel Corporation will acquire additional equity in Teck’s meteorological coal business unit, Elk Valley Resources (EVR).

Also, South Korea's POSCO would take a 3 percent stake in Teck’s coal unit in exchange for its 2.5 percent interest in Elkview Operations and its 20 percent interest in the Greenhills joint venture, Switzerland-based Glencore said in a statement.

The transaction is expected to close in Q3 2024, it said.

JSW’s interest

Last month, the Sajjan Jindal-led steel giant confirmed that it had not changed its plans for a potential stake buy in Teck's unit. "Our focus has not changed. I think the India-Canada situation will improve over time. We will continue to engage in discussions with the company, and if there is value and merit in the asset, we will look at it," said Jayant Acharya, Joint Managing Director and Chief Executive Officer, JSW Steel, told Moneycontrol in an exclusive interview on October 23.

JSW Steel declined to comment while Teck Resources did not immediately respond to a request for comment.

According to reports, JSW was planning to pick a 20 percent to 40 percent stake in EVR.