JSW Steel beaten in race for Teck Resources Limited’s coal business

Glencore 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 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.

 

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

 

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

 

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.

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