Trending: Glencore Bids for Teck's Coal Unit, Plans Spin-Off
June 12 2023 - 6:07AM
Dow Jones News
0935 GMT - Glencore is among the most mentioned companies across
news items over the past 12 hours, according to Factiva data after
the company confirmed its bid for coal unit of Canadian miner Teck
Resources. The Anglo-Swiss mining giant said the approach presents
Teck an alternative to Glencore's previous merger offer of $23
billion, which is still on the table. The alternative approach--a
non-disclosed cash-consideration--would allow for a demerger of the
two companies' combined coal and carbon steel materials business
Coalco. The move suggests that Glencore wants to quarantine the
rest of its assets from coal, AJ Bell analyst Russ Mould wrote in a
research note. "There's a merry-go-round of coal assets in the
industry as companies don't want to be left holding what is seen as
a dirty fuel," Mould said. In April, Glencore valued Teck's coal
unit at $8.2 billion. In its statement Monday, the company said the
potential spin-off would take up to two years after transaction
close. Dow Jones & Co. owns Factiva.
(christian.moess@wsj.com)
(END) Dow Jones Newswires
June 12, 2023 05:52 ET (09:52 GMT)
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