As part of the arrangement, Teck has agreed with Japan's Nippon Steel Corp that its current 2.5% interest in Elkview Operations will be rolled up to equity in Elk Valley.
Glencore plans to list the combined coal operations on the New York Stock Exchange within two years of the acquisition closing.
Glencore PLC is set to acquire a 77% stake in Teck Resources Ltd's steelmaking coal business, Elk Valley Resources, for USD6.93 billion in cash.
South Korean steel maker Posco Holdings Inc also intends to exchange its current 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% stake in Elk Valley.
Swiss commodities company Glencore PLC has entered into a binding agreement to acquire a 77% stake in the steelmaking coal business of Canadian miner Teck Resources Ltd, Elk Valley Resources, for USD6.93 billion in cash. The acquisition is expected to close in the third quarter of next year. As part of the arrangement, Teck has agreed with Japan's Nippon Steel Corp that its current 2.5% interest in Elkview Operations will be rolled up to equity in Elk Valley. South Korean steel maker Posco Holdings Inc also intends to exchange its current 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% stake in Elk Valley. Glencore will acquire from Teck, Nippon Steel and Posco's shareholder loans made to Elk Valley.
This acquisition follows Glencore's initial $23 billion hostile takeover bid of Teck's entire operation in April, which disrupted Teck's plans to spin off its coal business and raised concerns about potential job impacts in Canada. The deal, which requires Canadian government approval, could lead to Glencore's exit from the coal industry. Glencore plans to list the combined coal operations on the New York Stock Exchange within two years of the acquisition closing. The remaining stakes will be held by steelmakers Nippon Steel Corp. and Posco. The announcement concludes tense negotiations between the two companies.
As part of the arrangement, Teck has agreed with Japan's Nippon Steel Corp that its current 2.5% interest in Elkview Operations will be rolled up to equity in Elk Valley, and that Nippon Steel will acquire additional equity in Elk Valley from Teck.
South Korean steel maker Posco Holdings Inc intends to exchange its current 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% stake in Elk Valley.
Glencore will acquire from Teck, Nippon Steel and Posco's shareholder loans made to Elk Valley.
This follows Glencore's initial $23 billion hostile takeover bid of Teck's entire operation in April, which disrupted Teck's plans to spin off its coal business and raised concerns about potential job impacts in Canada.