JSW Steel considering bid for up to 20% stake in Canada’s Teck Resources

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Steel producer JSW Steel is considering a bid to buy up to a 20% stake in Canadian steelmaker Teck Resources’ coal business, Bloomberg News reported Saturday, citing people familiar with the matter.

The Indian steelmaker is in discussions with banks about possible financing for the acquisition, which could total around $2 billion, the report said, adding that the discussions are at an early stage and details such as price and timing may change.

JSW Steel and Tech Resources did not immediately respond to Reuters requests for comment.

Previously, Japanese steelmaker Nippon Steel and Swiss trading and mining firm Glencore have also shown interest in the Canadian coal unit. Nippon was interested in buying a stake and Glencore offered to buy the company as a standalone unit.

Last month, Tech said it had received several proposals for its coal business, as it reformulates a plan to spin it off from its copper-zinc unit. The plan failed to secure sufficient shareholder support in late April.

Reuters reported in May that Canadian businessman Pierre Lassonde was forming a consortium to buy a stake in Tech’s coal business.

(Only the title and image for this report may have been reworked by the Business Standard staff; the rest of the content is generated automatically from a shared feed.)

First published: July 15, 2023 | 11:56 p.m ist