Glencore sees its bid to create a £95bn commodities giant rejected by a Canadian rival
Glencore has had its bid to create a £95bn commodity giant rejected by a Canadian rival.
The London-listed mining and trading group has made a hostile £18bn bid for Teck Resources in its biggest takeover bid since merging with Xstrata in 2013.
A deal would create a natural resources giant worth £95bn and lead to a massive revamp of the company.
But the offer was rejected by Teck, with the Vancouver-based company’s chairman Sheila Murray stating, “The board is not currently considering a sale of the company.”
Glencore’s move came just weeks after Teck outlined plans to spin off its coal-fired steelmaking plant as it focuses on industrial metals, such as copper, critical to the green energy transition.
Signing off: Glencore launched a £18 billion hostile bid for Teck Resources
After the divorce, Teck plans to rebrand itself as Teck Metals Corp, while the Toronto coal business will be listed as Elk Valley Resources.
However, as part of the bid for Teck, Glencore said it would also spun off its own lucrative coal business and merge it with Teck’s steelmaking coal business to create a New York-listed “Coal Co.”
Glencore also proposed combining the two firms’ industrial metals and minerals businesses to create the world’s third-largest copper producer.
In a letter to Teck bosses, Glencore CEO Gary Nagle stressed that his mining giant was “the logical partner” for a merger.
But Teck Resources said it would go ahead with its own planned restructuring.