On Monday, Canada’s Teck Resources (TECKb.TO) reiterated its rejection of Glencore Plc’s (GLEN.L) unsolicited $22.5 billion deal, citing “fundamental problems” and urging shareholders to vote for a reorganization.
Last week’s Swiss miner acquisition proposal proposes spinning off the thermal and steelmaking coal divisions and rebranding the surviving firm as GlenTeck.
Teck said its board rejected the offer because Glencore did not give a clear plan for its planned coal firm and would expose shareholders to thermal coal, oil, LNG, and associated industries.
“Fundamental issues of Glencore’s proposal make it a non-starter and Glencore’s track record makes it an undesirable buyer,” Teck stated before a Monday investor call.
The Vancouver-based miner again recommended spinning off its steelmaking coal operation to focus on copper and other industrial metals to unlock additional value.
April 26 will decide this issue. The business said a split maximizes value, minimizes execution risk, and has no competitive or regulatory impediments, with completion expected by May.
