Canada to Review Glencore-Teck Deal, Eyeing Economic, Environmental Effects

By Paul Vieira

OTTAWA--Canada will review the Glencore-led proposed acquisition of Teck Resources' coal assets, with an eye toward implications for employment, the environment and indigenous rights, Finance Minister Chrystia Freeland said Tuesday.

Under Canada's foreign-investment laws, all major transactions are subject to a review by officials to ensure the deal offers a so-called net benefit for the domestic economy.

Freeland said she spoke with Teck Chief Executive Jonathan Price about the proposed transaction. As structured, Switzerland-based Glencore would acquire a 77% stake in Teck's coal operations. The transaction would value the coal business at $9 billion.

"All of the appropriate regulatory processes will be followed," Freeland said. "Our priorities will be, as they always are, protecting Canadian jobs, and protecting Canadian headquarters. Of course, environmental issues are very, very important for us, as are the rights of indigenous people."

She added Vancouver, British Columbia-based Teck is "an important Canadian company." Teck shares are up about 1.2% in early-afternoon trading on the Toronto stock market.

In the spring, when Teck rebuffed Glencore's unsolicited proposal for a full-blown $23 billion merger between the two companies, Freeland and other ministers said they were closely monitoring developments due to Canada's push to produce critical minerals for the shift toward cleaner energy.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

November 14, 2023 14:13 ET (19:13 GMT)

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