Canadian mining group Teck Resources said on Monday it had rejected an “unsolicited and opportunistic” offer to buy Swiss commodities giant Glencore.
The latter had offered a premium of 20% over Teck’s share price at the close of March 26, when announcing its offer.
Teck’s board “is not considering selling the company at this time. We believe the separation we are planning creates greater value for the business,” said Sheila Murray, Board Chair.
The latter therefore “unanimously rejected the unsolicited and opportunistic acquisition proposal of Glencore”.
The Swiss group planned after the acquisition to split Teck Metals, which combines thermal coal activities, and Elk Valley Resources, dedicated to steel activities.
The Canadian group, based in Vancouver, says it is convinced that the separation plan it is considering for its part and which “will create two world-class Canadian companies” “offers a better opportunity to maximize value for all shareholders”.
In addition, Glencore’s unsolicited proposal poses significant timing, regulatory and enforcement risks, particularly in relation to Teck’s planned separation, the Canadian group adds.
This is an “opportunistic attempt to transfer value to Glencore shareholders at the expense of Teck shareholders”, denounces the latter.
The group announced a few weeks ago its decision to separate from its steelmaking coal unit to focus on industrial metals, such as copper, essential to the global energy transition.
Representing one of the main mining groups in Canada, Teck Resources produces coal, zinc and copper. Outside of Canada, the group is present in Peru, Chile, and the United States.