Canada to Scrutinize Teck Resources’ Coal Business Sale to Glencore-Led Consortium
Canada’s Deputy Prime Minister, Chrystia Freeland, has announced that the federal government will closely scrutinize the recent agreement between Vancouver-based Teck Resources and a consortium led by Swiss mining giant Glencore PLC. The deal involves the sale of Teck’s 77% stake in its core metallurgical coal business to Glencore, with the remaining portion going to Japan’s Nippon Steel and South Korea’s POSCO, totaling a substantial US$8.9 billion.
Speaking to reporters in Toronto, Ms. Freeland emphasized the seriousness of the transaction and outlined the key factors that will be considered during the regulatory review process. These factors include safeguarding Canadian jobs, maintaining a Canadian headquarters, addressing environmental concerns, and respecting the rights of Indigenous people.
Related: Barrick CEO Speaks Against Canadian’s Probe Into Glencore/Teck Deal
Teck had initially considered spinning off its coal business, Elk Valley Resources Ltd., but the plan was abandoned due to insufficient shareholder support earlier in the spring. The current deal with Glencore marks a significant shift in strategy for Teck.
Glencore had previously attempted to acquire Teck in its entirety, including the copper and zinc mines, but faced repeated rejections from Teck’s board. In April, Ms. Freeland, along with two other federal ministers, expressed reservations about Glencore’s proposed acquisition, highlighting the importance of retaining companies like Teck within Canada.
The federal government will assess the transaction’s net benefit to Canada and evaluate whether it passes a national security test. Ottawa retains the authority to reject the deal based on either factor. This rigorous review underscores the government’s commitment to protecting Canadian interests, jobs, and environmental considerations in major business transactions.
As Canada navigates this pivotal moment in its resource sector, the outcome of the regulatory review will undoubtedly shape the landscape of Teck Resources’ coal business and have broader implications for foreign investments in the country’s key industries.
Source: The Globe and Mail
Featured News
Mexico Moves Forward with Reform to Eliminate Key Regulators, Including Competition Watchdog
Aug 23, 2024 by
CPI
DOJ Sues RealPage for Alleged Rent-Fixing Scheme Using AI Software
Aug 23, 2024 by
CPI
Advance Auto Parts to Offload Worldpac for $1.5 Billion
Aug 22, 2024 by
CPI
Bronfman Ups Ante to $6 Billion in Paramount Battle, Skydance Deal at Risk
Aug 22, 2024 by
CPI
Google and California Strike Historic Deal to Fund Newsrooms Amid Controversy
Aug 22, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich